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Fed's Williams says he has not seen any big move out of US assets, monetary policy in good place | Reuters | May 19, 2025

New York Federal Reserve President John Williams stated that there has been no significant shift away from U.S. assets despite recent economic uncertainties. He emphasized that the current monetary policy remains appropriately calibrated, with the economy showing resilience. Williams acknowledged the challenges posed by volatile tariffs and policy-driven uncertainties but suggested that clearer economic insights would emerge beyond June or July.

A fire sale of Portland’s largest office tower shows how far the city has fallen | Wall Street Journal | May 19, 2025

Portland’s U.S. Bancorp Tower, once a premier downtown office asset, is now more than 50 percent vacant and listed for sale at roughly $70 million, more than 80 percent below its 2015 value. The building’s decline reflects broader struggles in the city’s commercial real estate market, where crime, drug use, and persistent office vacancies have dampened recovery. With a first-quarter vacancy rate of 35 percent, the highest among major U.S. CBDs, Portland lags national office trends. Though public safety has recently improved and new leadership is considered pro-business, companies continue to leave, and the city is now focused more on tenant retention than new investment.

Chicago investment firm raises $1.2 billion for real estate fund | Bloomberg | May 19, 2025

A Chicago-based investment firm has successfully raised $1.2 billion for a new real estate fund focused on acquiring and developing properties across various sectors. The fund aims to capitalize on emerging opportunities in the real estate market, particularly in areas showing signs of recovery and growth. The firm's strategy includes targeting assets that can deliver strong returns through active management and value-add initiatives.

National retail fundamentals remain robust, even as uncertainty takes a toll | Commercial Observer | May 20, 2025

Despite economic uncertainties, the U.S. retail sector demonstrates resilience with strong fundamentals. According to insights from JLL and the International Council of Shopping Centers (ICSC), consumer spending remains steady, and retailers continue to adapt to changing market dynamics. Total retail vacancy stayed level at 4.1 percent compared with last quarter, according to a recent market report from JLL, ahead of the annual Innovating Commerce Serving Communities conference in Las Vegas (JLL’s report was more bullish compared with a report released by Cushman & Wakefield last week). General retail centers — defined by JLL as freestanding, single-tenant commercial buildings — had the lowest vacancy of all retail subclasses with 2.4 percent this past quarter. Malls were the worst offender with an average vacancy rate of 8.7 percent.

Manhattan's trophy office owners won't let tariffs rain on their parade | Bisnow | May 21, 202

Despite economic uncertainty and rising tariffs on construction materials, Manhattan’s top-tier office landlords remain confident. At Bisnow’s 2025 New York Office and Workplace event, executives from firms like Vornado, Savanna, and Columbia Property Trust acknowledged cost pressures but emphasized strong tenant demand. Some reported 2 to 6 percent increases in build-out costs and are turning to strategies like sourcing domestic materials and prefabrication to manage exposure. The high end of the market is especially tight, with Class-A leasing reaching its highest level since 2019 and top-tier vacancy falling to 9.2 percent. However, Class-B and C properties continue to struggle, keeping citywide vacancy elevated at 15.5 percent. Industry leaders warned that further uncertainty from tariff policy could slow deals but noted that strong demand and constrained supply suggest rents may rise in the months ahead.

Trump floats a public offering for Fannie Mae, Freddie Mac | Bloomberg | May 22, 2025

President Trump announced he is seriously considering taking Fannie Mae and Freddie Mac public, potentially ending their government conservatorship that began during the 2008 financial crisis. The mortgage giants have returned to profitability, and a public offering could raise up to $382 billion, making it one of the largest in history. The administration will consult with key officials, including Treasury Secretary Scott Bessent and FHFA Director Bill Pulte. However, significant challenges remain, including structuring the offering and maintaining investor confidence in the government guarantee behind mortgage-backed securities. Analysts warn that if government backing is reduced, mortgage rates could rise. Shares of Fannie and Freddie surged following the announcement.

Colliers sees early signs of a fresh investment cycle emerging | GlobeSt | May 22, 2025

A new Colliers report signals that commercial real estate values may have bottomed out, suggesting the early stages of a recovery. Retail and industrial sectors are leading the rebound, with select assets seeing double-digit growth. Multifamily is recovering modestly, while office and hospitality continue to lag. Liquidity remains limited for large office deals, though distressed sales remain rare. Colliers sees renewed interest from private capital, particularly in markets like New York, Boston, and San Francisco. Investors are weighing two paths: locking in fixed-rate financing now or waiting in anticipation of a recession. Colliers views the current moment as a favorable entry point for opportunistic buyers.