?? Tenant wars fueling retail's renaissance

???Hello, friends! One Federal Reserve official warned this week that we could be in for an interest rate hike rather than a cut. What a roller coaster.

In this week’s newsletter, retail tenants compete, an investor goes “dirt-first,” and a converted church brings in $2 million.

Let’s roll!

???NO-FLUFF NEWS: CRE HEADLINES

?? $2.1 Billion Multifamily Bet: New York-based private-equity firm KKR has paid $2.1 billion for more than 5,200 apartment units across the country, signaling that big investment firms are betting on a multifamily rebound.

???Apartment Starts Plummet: Starts for buildings with five or more units fell 51.7% YoY in May to a seasonally adjusted rate of 278,000, according to a report from HUD and the U.S. Census Bureau.

???Taxes Squeeze Industrial: Property tax sticker shock is hitting warehouse occupiers, as industrial properties have seen a 29.6% average increase in assessments over the last five years with property taxes growing by 21.3%.

???TOP STORY: TENANT WARS FUELING RETAIL’S RENAISSANCE

Retail is having a moment. After years of minimal shopping center development boosted by post-pandemic sales growth, retailers now find themselves competing for scarce available space — a sharp contrast to the not-so-recent past when landlords hunted for (and struggled to find) tenants.

?? Supply Squeeze, Demand Surge: Available retail space has hit historic lows, with availability declining across box sizes and regions. Large national retailers are aggressively expanding, contributing to the demand surge and intensifying competition for prime locations. This has led to higher rents, stricter lease terms, and record-fast leasing speeds....