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Faropoint secured a $474 million refinancing for an industrial real-estate portfolio. The financing uses an earn-out structure, tying portions of the proceeds or economics to future performance or milestones, according to the transaction details.
The Faropoint $474 million industrial refinancing underscores continued capital-market activity for industrial assets despite changing borrowing costs and valuation conditions, according to the transaction details.
The Faropoint industrial refinancing appears among recent commercial real-estate deal activity that also includes office and life-sciences property sectors, according to the source.
Jensen Huang admitted in a letter to Nvidia staff to having an affair with Alice Huang, an executive at Megaspeed who is accused of spying for the Chinese government. US intelligence agencies believe Alice Huang sought to elicit information from Jensen Huang as well as access to Nvidia chips. Jensen Huang's letter made no reference to the allegations of spying.
Nvidia's board said it has 'no reason to believe that either national security or Nvidia secrets were compromised.' The board added that its independent inquiry will examine all available information.
Megaspeed is a Singapore-based IT and cloud company currently under investigation for smuggling Nvidia GPUs into China. Megaspeed has purchased more than $2 billion in Nvidia hardware. Alice Huang, who is accused of Chinese espionage, was an executive at Megaspeed. Megaspeed has denied involvement in chip smuggling.
Congressional Republicans wrote to Jensen Huang requesting a closed-door briefing. Michigan Rep. John Moolenaar, chairman of the House Select Committee on China, said the reports raise 'significant national security concerns regarding the PRC's access to sensitive U.S. technology and information' and stated it is vital that Congress determines the extent to which US national security has been placed at risk.
Yes. When the New York Times published a story about an unspecified relationship earlier in November 2026, Jensen Huang called it 'groundless speculation' and said interactions with Alice Huang 'have been related to Megaspeed, and it was completely normal and not unusual.' A week later, after further reporting, he admitted to the affair.
Choice Hotels properties within 10 miles of a major data center outgrew the rest of Choice's U.S. system by more than 400 basis points in Q3 2026, CEO Dom Dragisich said on the company's November 2 earnings call. Dragisich said Choice 'continued to benefit from infrastructure-related demand, including data center development.'
Occupancy did the heavy lifting. U.S. occupancy rose 160 basis points while rate grew 1% in Q3 2026, according to the Investing.com transcript of the Choice Hotels earnings call. CEO Dom Dragisich said the 3.8% U.S. RevPAR gain came mainly from higher occupancy, with rate growth also picking up.
Choice Hotels raised its full-year 2026 U.S. RevPAR outlook to between 1.5% and 2.5% following Q3 2026 results. Choice Hotels also raised its adjusted EBITDA guidance range alongside the RevPAR outlook, according to the company's earnings release.
Extended stay makes up more than 40% of Choice's U.S. pipeline, CFO Scott Oaksmith said on the Q3 2026 earnings call, noting the segment has posted 13 straight quarters of double-digit rooms growth. Choice Hotels' global pipeline stood at 78,200 rooms at quarter-end, with 96% in extended stay, midscale, and upscale brands, according to the earnings release.
Choice Hotels management expects conversions to make up about 90% of U.S. openings in 2026, per the earnings call transcript. CEO Dom Dragisich called conversions an 'important advantage' for net rooms growth. Choice's U.S. conversion pipeline grew to 25,500 rooms, up 29% from a year earlier, according to the company's earnings release.
atNorth signed a project development agreement with Swedish heat recovery firm Calentix to recover waste heat from atNorth's SWE04 data center in Sollefteå, Sweden, and pipe it to the nearby Långsele district heating network. Calentix will lead development and financing. The first phase targets 1.6MW of heat recovery, expandable to approximately 20MW, with first delivery planned for Q2 2029.
atNorth and Calentix are targeting the first delivery of heat to the Långsele district heating network in Q2 of 2029. The companies plan to sign a heat purchase agreement in 2027, following which they will make a final investment decision. The project will require between 2km and 10km of new pipelines.
atNorth's SWE04 data center in Sollefteå, Sweden, has capacity of up to 300MW. The site is located at Hamre Industrial Park in Långsele on a 50-hectare plot, supports direct liquid cooling, and can support densities up to 1MW per rack, according to atNorth.
Swedish utility Adven operates the Långsele district heating network that will receive waste heat from atNorth's SWE04 data center, according to the source. The project will require between 2km and 10km of new pipelines to connect the data center to that network.
atNorth has signed several heat reuse agreements in recent years, according to the source. Most recently, in August, atNorth partnered with sustainable infrastructure firm Selected Group on a heat reuse project at its DEN02 data center campus in Ølgod, Denmark.
Sea Cloud is a new cloud-focused business unit launched by Singaporean technology company Sea Ltd. According to an SEC filing containing an email from founder and CEO Forrest Li, Sea Cloud will offer cloud AI services to enterprises around the world, built on an internal cloud platform Sea has operated for more than ten years.
According to Sea Ltd.'s most recent annual report, the servers Sea uses are hosted in leased data centres across its markets, as well as on cloud services. The data centres are owned and maintained by major domestic and international data centre providers, and Sea generally enters into leasing and hosting service agreements with renewal terms.
Sea Ltd.'s stock dropped from $88.67 to $82.06 following the publication of the SEC filing announcing Sea Cloud, and was sitting at approximately $77.81 at the time the article was written, according to the article by Georgia Butler published October 21, 2026.
According to Sea Ltd. founder and CEO Forrest Li, the company's quarterly active users have grown from 69 million at its 2017 IPO to 666 million, and quarterly revenue has grown more than 80 times, from $94 million to $7.8 billion.
According to the article, Monee, Sea Ltd.'s digital financial services offering, could go public separately, though no further details or timeline are provided in the source text.
Ironsand provided the $203.5 million construction loan to a joint venture between SK Development and Kinsmen Property Group. The loan is structured as floating-rate and interest-only. Brian Renzi, managing principal at Ironsand, said the project presented an opportunity to finance a well-conceived development backed by an experienced ownership team in a market with significant barriers to new construction.
Around 37 of the 184 units at 50 Third Avenue will be reserved as affordable housing for households earning 80% or less of the area median income, according to the release.
If the Landmarks Preservation Commission does not approve the air rights transfer from St. Mark's Church in-the-Bowery, the joint venture plans to build a single, market-rate building with 14 apartments, according to the source. The air rights transfer is also required for the developers to use the 485-x tax incentive, according to Commercial Observer.
The East Village submarket has a vacancy rate of 2%, according to a Citi Real Estate Funding July term sheet detailing loans Citi has made in the area. That rate is slightly above the citywide average of 1.4%, according to the same term sheet.
Kinsmen Property Group has been slowly building the assemblage at the 50 Third Avenue site, closing its deal for the sixth building on the block in 2024 for $10 million, according to PincusCo.
Investcorp paid $76.5 million for eight industrial properties along the I-495 corridor and in the Worcester area, according to public deed records. Investcorp purchased the buildings from Boston-based Longfellow Real Estate Partners, which had acquired the same eight properties between 2021 and 2022 for roughly $62.3 million.
The eight properties are located at 28 Torrice Drive in Woburn; 128-148 Bartlett St. in Marlborough; 52 York Ave. in Randolph; 10 Liberty Way and 120 Constitution Blvd. in Franklin; and 45 Oak St., 23 Bridle Lane and 25 Bridle Lane in Westborough, Massachusetts.
Investcorp said its industrial acquisition strategy is to pursue well-located, infill light industrial product in leading U.S. industrial markets with strong supply-demand fundamentals. Investcorp made that statement in connection with its previously announced $225 million of industrial acquisitions in the Philadelphia and Nashville markets.
Investcorp has more than $10 billion in U.S. real estate assets under management. Last month, Investcorp announced $225 million of industrial acquisitions in the Philadelphia and Nashville markets, and the firm has now added the $76.5 million Massachusetts portfolio.
Longfellow Real Estate Partners acquired the eight Massachusetts properties between 2021 and 2022 for roughly $62.3 million, according to deed records, and sold them to Investcorp for $76.5 million, according to public deed records. The source text does not state a specific gain figure.
Colorado's HB25-1269 allows fines of up to $2,300 for every 30 days a covered building remains out of compliance with performance standards starting in 2030, with higher penalties possible for subsequent violations. New York City's Local Law 97 charges $268 for every metric ton of CO2 equivalent a covered building emits over its allocated limit, with those limits tightening in 2030.
Delegated Regulation (EU) 2024/1364 requires every data center with at least 500 kW of installed IT power demand to report 24 key performance indicators spanning energy, ICT and data traffic to a European database each year.
According to the article, measures include full-aisle containment and sealing of cable cutouts and floor gaps, plenum repair, EC fan retrofits with dynamic controls, filter optimization, and temperature set point optimization within the ASHRAE-recommended range of 18°C to 27°C for air-cooled IT equipment. The article notes that many legacy rooms still deliver inlet air below the bottom of ASHRAE's recommended range.
The Promera proof-of-concept at a national media and connectivity provider produced more than $50,000 in estimated cooling energy savings at an electricity price of roughly seven cents per kWh, a 1.79-year payback on the energy savings portion, and a potential 56 percent return on that segment. Average rack temperatures rose a safe 7.2°F, and the number of racks running below 64.4°F fell by 31.5 percent.
Uptime Institute's 2026 Global Data Center Survey found that the share of organizations actively collecting sustainability metrics has returned to a gradual upward trend, while carbon emissions tracking remains a minority activity. The same survey found legacy infrastructure is slowing global efficiency progress, with average PUE improving only slightly in 2026.
Morningstar will occupy more than 275,000 square feet at the Thompson Center, located at 171 N. LaSalle St. in Chicago's Loop. Morningstar will co-anchor the 1.2 million-square-foot building alongside owner Google. The company plans to move there in late 2028.
According to Morningstar, the lease marks Chicago's largest downtown office transaction in 2026 to date. Morningstar has been headquartered in Chicago since its founding over 40 years ago and currently employs over 1,500 people in the city.
The renovated Thompson Center will be an all-electric building featuring direct access to public transit, large floor plates, a 17-story atrium with food-and-beverage and retail offerings, and onsite employee amenities, according to the source. Google recently shared new design renderings for the renovation.
Google announced plans to acquire the 1.2 million-square-foot Thompson Center in 2022. The building was designed by Chicago architect Helmut Jahn and opened in 1985 as the State of Illinois Center before being renamed to honor Illinois Gov. James R. Thompson.
Alongside its headquarters move to the Thompson Center, Morningstar plans to donate $5 million over the next five years, according to the source.
Yes. Manhattan's office market ended the third quarter with availability continuing to decline, and availability trends point to a more balanced environment heading into the final quarter of the year, although performance remains uneven across submarkets and asset quality.
Class A and Class B availability in Manhattan are narrowing the gap with pre-pandemic levels, according to the source. The source does not provide specific percentage figures for current or pre-pandemic availability rates.
The source indicates demand is broadening beyond the highest-quality buildings as tenants absorb space. Trophy properties are seeing particularly tight conditions, but the market shift suggests leasing activity is expanding across several building categories, including Class A and Class B properties.
No. Although Manhattan's overall office availability is declining and conditions point to a more balanced environment, the source states that performance remains uneven across submarkets and asset quality.
Governor Kathy Hochul signed an executive order imposing the nation's first statewide moratorium on new hyperscale data centers while state regulators develop a new framework governing how large facilities connect to and pay for energy infrastructure, according to Jason Few of FuelCell Energy.
Jason Few of FuelCell Energy said moratoriums do not pause demand for computing and instead simply determine where that demand is met. Few said developers are already pursuing opportunities in states that offer more predictable permitting pathways and clearer access to energy when development pauses in one region.
Jason Few of FuelCell Energy said developers are exploring and implementing behind-the-meter distributed power generation including fuel cells, alongside hybrid configurations such as battery energy storage systems, to reduce dependence on constrained transmission infrastructure. Few also cited co-located generation, microgrids, and emerging technologies involving hydrogen and carbon capture.
Jason Few of FuelCell Energy said similar actions are unfolding nationwide, from temporary local bans and permitting pauses to broader legislative efforts aimed at slowing growth, and that new restrictions and moratorium proposals continue to emerge across the country reflecting concerns about grid capacity, power costs, and community impacts.
Jason Few of FuelCell Energy said the countries that can build and power advanced computing infrastructure will be best positioned to lead in AI, cybersecurity, and technological innovation. Few said that as America debates whether to slow development, global competitors are moving quickly to build.
EQT Real Estate purchased the industrial portfolio from Rexford Industrial Realty for $1.2 billion. The deal spans 5.2 million square feet of rentable space, according to Rexford Industrial Realty.
Rexford Industrial Realty said the portfolio sold to EQT Real Estate spans 5.2 million square feet of rentable space. The total transaction value is $1.2 billion.
Latham & Watkins LLP advised Rexford Industrial Realty on the $1.2 billion sale of its industrial portfolio to EQT Real Estate, according to Rexford Industrial Realty's announcement.
Rexford Industrial Realty sold an industrial portfolio to EQT Real Estate for $1.2 billion. The portfolio covers 5.2 million square feet of rentable space, according to Rexford Industrial Realty.
Lululemon is set to take approximately 12,000 square feet at Tribune Tower, located at the corner of North Michigan Avenue and East Illinois Street on Chicago's Magnificent Mile, according to Crain's Chicago Business.
Lululemon interim co-CEO Meghan Frank said on an earnings call that the company plans to take a 'very measured' approach to store expansion and intends to open a net 35 new stores this year.
Rhino Investments Group acquired Randhurst Village, a 932,000-square-foot property in Mount Prospect, from DLC Management for $95 million. The acquisition was financed with $72.3 million provided by 3650 Capital and Aquarian Real Estate Partners, comprising a $45.6 million senior loan and a $26.7 million mezzanine loan.
Darwin Investment Group completed a $130 million refinancing of a 39-building industrial portfolio totaling more than 2 million square feet across the Chicago area and Wisconsin. Wells Fargo Commercial Banking's middle market real estate team provided the financing. As part of the transaction, Darwin Investment Group's George Cibula and Matthew Lewandowski acquired the 49% ownership interest held by their partners, bringing their ownership to 100%.
Stream Realty Partners inked more than 100,000 square feet of leases at the Wrigley Building, including new deals and renewals. Perkins&Will renewed its 48,000-square-foot lease through 2038, and Oil-Dri signed a new 15-year lease for approximately 20,000 square feet. Stream Vice Presidents Erica Marshall and Katie Hull represent Mansueto Office in leasing at the property.
Healthcare Realty Trust acquired the Carolinas Medical Outpatient Collection from Hammes for $56 million. The portfolio includes two fully leased medical outpatient buildings in Summerville, South Carolina, and a fully entitled development site in Chapel Hill, North Carolina.
Yes. The two medical outpatient assets in Summerville, South Carolina included in Healthcare Realty Trust's $56 million acquisition from Hammes are described as fully leased.
The Carolinas Medical Outpatient Collection includes a fully entitled development site in Chapel Hill, North Carolina. Healthcare Realty Trust acquired this site as part of the $56 million transaction with Hammes, adding future development potential alongside the two stabilized South Carolina assets.
The portfolio spans the Charleston-area market in South Carolina, where two fully leased medical outpatient buildings are located in Summerville, and the North Carolina market, where a fully entitled development site is located in Chapel Hill.
Regent Properties sold Park Towers to Interra Capital Group. JLL Capital Markets represented Regent Properties as the seller. Interra Capital Group is a Houston-based commercial real estate investment, asset management and development firm focused on value-add and distressed acquisitions, founded in 2006.
Park Towers was 89.5% leased at the time of sale, with a weighted average lease term of 6.3 years, according to JLL Managing Director Rick Goings. The tenant roster is diversified across industries including banking, financial services, law, real estate and energy.
Morgan Stanley provided acquisition financing for Interra Capital Group's purchase of Park Towers. JLL Senior Managing Director Susan Hill led debt advisory efforts on behalf of Interra Capital Group in arranging the financing.
Park Towers is located at 1233 and 1333 West Loop South in Houston's Galleria/Uptown submarket. The Galleria/Uptown area encompasses over 30 million square feet of commercial office space, six million square feet of retail, 8,400 hotel rooms, and more than 100 restaurants, attracting over 30 million visitors annually.
JLL Managing Director Rick Goings said there have been 10 office asset sales over $100 million in the last 18 months alone, adding that large deal activity is back. Goings described Park Towers as an opportunity to acquire a premier Galleria office asset at a basis well below replacement cost.
Ciminelli Real Estate Corporation and Gordon Brothers sold the two R&D manufacturing properties at 3 and 6 Riverside Drive in Andover, Massachusetts. Hendrie Lane Capital and V12 Investments were the buyers. JLL Capital Markets arranged the transaction, which closed at $43.5 million.
The source does not name individual tenants but states there are four tenants across the two properties. Three of the four tenants operate their headquarters from the buildings. The tenants span the medical device, musical instrument, aerospace, and analytical instrumentation sectors, according to JLL.
Hendrie Lane Capital is a privately held real estate investment company founded in 1977. According to its own description, the firm has invested in over 25 properties and primarily focuses on office, medical office, research and development, advanced manufacturing, life science, and apartment properties across New York City, the Greater Tri-State Area, Massachusetts, Florida, and Southeastern U.S. markets.
V12 is a commercial real estate investment firm focused on flex, manufacturing, and warehousing assets alongside select alternative verticals, according to the firm's own description in the JLL release.
JLL arranged both the $43.5 million sale and acquisition financing for the two R&D properties at 3 and 6 Riverside Drive in Andover, Massachusetts, according to JLL. Washington Trust Bank is named in the release, though the source does not specify the financing terms or loan amount.
JLL Property Finance Trust will primarily invest in debt backed by multifamily, industrial, certain retail, self-storage, industrial outdoor storage, single-family rental, senior housing, life sciences, manufactured housing, mixed-use and healthcare assets. It will invest in ground leases, net leases, cold storage and data centers on a more limited basis, according to the SEC filing.
JLL Property Finance Trust expects to operate with between 60% and 80% leverage once capital is substantially deployed. It is targeting loan-to-value ratios between 60% and 75% on senior, core-plus loans and up to 85% LTV on subordinated positions, according to the SEC filing.
LaSalle Investment Management has an advisory agreement to operate JLL Property Finance Trust. LaSalle Investment Management CEO Bradley Gries is interim CEO of the new REIT, and JLL Income Property Trust Chief Financial Officer Gregory Falk is also acting as CFO for the new REIT.
Redemptions for all shares of JLL Property Finance Trust are limited to 5% of net asset value per quarter. Shares held for less than one year will be redeemed at 95% of NAV, according to the SEC filing.
The CMBS special servicing rate climbed 33 basis points to 11.42% in August, reaching its highest level since 2013, according to Trepp. Office loans stood at 16.9% in special servicing and large mall debt at 13.6%. Borrowers with loans from 2020 or earlier are grappling with refinancing against a 10-year Treasury yield hovering around 5%, its highest level since 2007.
According to Bisnow's Dan Rabb, data center demand has doubled, fueling new AI boomtowns. The surge is linked to AI-driven development, with Anthropic signing a $35 billion deal with an Nvidia-backed cloud provider cited as a marker of the scale of activity in the sector.
According to Bisnow's Dan Rabb, Anthropic signed a $35 billion deal with an Nvidia-backed cloud provider. The deal was reported on September 1, 2026. The source does not name the specific cloud provider beyond identifying it as Nvidia-backed.
According to Bisnow's Matt Wasielewski, a billionaire-backed group is planning a campaign to sway Americans toward data centers. The report is dated September 1, 2026. The source does not name the group or identify the billionaires involved.
According to Bisnow's Dan Rabb, the Texas governor's data center power pause received a split verdict from developers. The report is dated August 28, 2026. The source provides no further detail on the substance of the pause or the nature of the split reaction.
According to MSCI, $70B in M&A-type transactions drove August total sales volume to $107B, a 127% year-over-year increase. The primary driver was the merger of AvalonBay Communities and Equity Residential to create Vivmark Residential, with an enterprise value around $70B. Excluding M&A deals, sales volume was actually down roughly 21% year-over-year.
JPMorgan Chase analysts wrote that rising interest rates have slowed decision-making rather than scuttled deals outright. The analysts noted that the increase in rates on both the long and short end of the curve occurred late in the third quarter, limiting impact on deals already in motion. The multifamily sector, where capitalization rates are already relatively low, faces the most risk that elevated debt service costs could derail transactions.
Industrial asset sales volume rose 14% year-over-year to $11.5B in August, and senior housing sales climbed 8%, according to MSCI. Every other asset class saw volume decline. Data centers recorded no assets trading in August, hotel sales fell 45%, and office, retail, and development site sales volumes were all down compared to the prior year.
Year-to-date sales volume through August is $483B, up 53% from the prior year, according to MSCI. A 221% increase in portfolio and entity-level deals drove that growth. Single-asset sales volume is up 12% through August compared to the prior year.
The average capitalization rate across all commercial real estate transactions in August was 6.01%, down 80 basis points from the prior month, according to the source. The RCA CPPI U.S. National All-Property Index was up only 0.1% from the prior year, indicating prices barely moved in August.
Hendrie Lane Capital has launched a new strategy to invest in R&D and advanced manufacturing properties. Hendrie Lane Capital's executives see the sector at the start of a sustained growth period that will attract more institutional money. The firm is looking for deals in the Boston, New York, D.C., San Francisco and North Carolina Research Triangle regions.
According to Hendrie Lane Capital, the two buildings at 3 and 6 Riverside Drive in Andover are fully leased to four tenants: NEOLab, Physical Sciences, SciAps and music equipment company Fishman.
JLL's Andrew Gray, Hugh Doherty and Emily Fuller arranged a $28.6 million acquisition loan from Washington Trust Bank on behalf of the buyer, Hendrie Lane Capital.
Hendrie Lane Capital has invested in office, retail and multifamily properties for more than 25 years, according to Hendrie Lane Capital. The Andover acquisition at 3 and 6 Riverside Drive represents its first deal under the new R&D and advanced manufacturing strategy.
Hendrie Lane principal Tony Calabrese said in a statement that the Riverside Drive asset was acquired at a significant discount to replacement cost and to historical market pricing, and is leased long-term to tenants who have invested heavily in their space.
Oxford Properties sold the four-asset, 238,473-square-foot light industrial portfolio in Riverside, California. Sierra Ridge Capital acquired the assets, with Pacific Properties Group of Los Angeles providing the equity. JLL Capital Markets represented Oxford Properties in the transaction, according to JLL's September 21, 2026 news release.
JLL Capital Markets' Debt Advisory team arranged a $25 million acquisition loan from a correspondent life insurance company on behalf of the new owner, Sierra Ridge Capital. The debt team was led by Senior Managing Director Jeff Sause, Analyst Danny Ryan, and Analyst Jenny Barger, according to JLL.
The portfolio contains two distinct property types. The first is 12000 Magnolia Ave., a 132,800-square-foot, 100% leased multi-tenant facility built in 2018 with 30-foot clear heights. The second is Hunter Business Park at 1110-1130 Palmyrita Ave., comprising 105,673 square feet across 14 suites constructed in 1990 with 18-foot clear heights, according to JLL.
Sierra Ridge Capital invests as principal alongside institutional, family office, and private capital partners, and operates assets on behalf of ownership groups, according to Sierra Ridge Capital's own description. The firm focuses on industrial properties in the western U.S. and emphasizes well-located assets held at a durable basis and managed for long-term income growth.
Pacific Properties Group, Inc. is a regional owner and operator of grocery-anchored shopping centers and multi-tenant industrial parks primarily in California, with additional holdings in Arizona, Nevada, and Texas. Pacific Properties Group was founded in 1990 and is headquartered in Los Angeles, according to the company's description.
Ambrose, a vertically integrated investment manager headquartered in Indianapolis and focused exclusively on industrial, logistics and e-commerce real estate, sold Westpoint Business Park, Building IV. SkyREM, a privately owned real estate investment company with offices in New York and Philadelphia, acquired the asset. JLL Capital Markets represented Ambrose in the transaction.
Westpoint Business Park, Building IV totals 500,406 square feet on approximately 42.7 acres. The Class A cross-dock facility features a 40-foot clear height, 52 dock-high doors, three drive-in doors, a 140-foot truck court, 319 automobile parking spaces, 60 trailer parking positions, and 12,417 square feet of office space. The building was completed in 2022 and is LEED Silver-certified.
According to SkyREM, the company owns and operates in excess of 12 million square feet across approximately 30 properties in 20 major U.S. industrial, logistics and trade-gateway markets, along with strategic land holdings and an integrated solar business. SkyREM invests as a principal for its own account.
According to the source, the facility supports food-grade packaging and manufacturing governed by stringent sanitation, traceability and quality-control standards tied directly to food safety and food security. Industrial space capable of meeting those requirements is described as scarce, and the tenant improvements required to qualify and operate the space make Westpoint Building IV a node in a nationally significant food supply chain rather than interchangeable distribution square footage.
The JLL Capital Markets team was led by Senior Managing Director John Huguenard, Managing Director Ed Halaburt, Director Will McCormack, and Associate Cameron Chandra.
Data center deals have accounted for roughly 8% of new CMBS issuance since early 2025, with about $17 billion sold. That volume is more than triple the total from the prior two years. Citigroup expects issuance to reach between $18 billion and $20 billion next year, representing a 50% increase.
AAA-rated data center CMBS trade at spreads of 1.65 percentage points above floating-rate benchmarks, wider than office, retail, and industrial properties. Underwriting is complicated by confidential tenant identities, specialized infrastructure, and lease provisions around minimum capacity commitments and downtime clauses that determine who bears unexpected costs.
Facilities designed for one generation of AI chips can become outdated within years as power and cooling requirements surge. If hyperscale tenants depart when leases roll, highly specialized buildings may prove costly to repurpose or re-lease. Oversupply concerns are also mounting as billions in new projects seek financing, and local opposition has made the regulatory environment harder to predict.
CWCapital Asset Management is developing new stress tests for the data center CMBS sector. Axonic Capital has kept its data center exposure small and has emphasized geographic and tenant diversification as risk-management strategies, according to the source.
CMBS investors must now assess grid capacity, power costs, cooling infrastructure, and computing density rather than traditional real estate metrics. Tenant identities often remain confidential, making underwriting more opaque. The sector's dependence on cheap electricity and transmission capacity means the risk profile looks more like infrastructure finance than traditional real estate.
Baron Real Estate Income Fund returned 12.18% in the second quarter of 2026 (Institutional Shares), according to the fund's Q2 2026 shareholder letter. The fund modestly outperformed the MSCI US REIT Index, which returned 11.84% over the same period.
As of June 30, 2026, Baron Real Estate Income Fund held 80.6% of net assets in REITs, 15.8% in non-REIT real estate companies, and 3.6% in cash and cash equivalents, according to the fund's Q2 2026 shareholder letter.
Baron Real Estate Income Fund acquired shares in Curbline Properties Corp. during the second quarter of 2026, according to the fund's shareholder letter. No additional detail on position size or rationale was provided in the source text.
Baron Capital said the first half of 2026 offered early evidence that a multi-year recovery in real estate is beginning to take shape. Baron also said it maintains a constructive outlook for the broader equity market, public real estate, and the fund.
Stockdale Capital Partners' new real estate credit platform aims to make $300 million worth of loans in the next 12 months. Individual loans are expected to range between $15 million and $75 million and will focus on office, life sciences and hospitality assets across different U.S. regions, according to a company release.
Stockdale Capital Partners hired Alec Maki as senior vice president of credit investments to lead the new credit platform. Maki spent the last seven years at Fortress Investment Group specializing in real estate debt origination, according to a company release. Maki will work alongside Chase Jensen, Stockdale's managing director of acquisitions and a former Fortress colleague.
The Stockdale Capital Partners credit platform will specialize in deploying capital as senior bridge loans, mezzanine debt, special situation investments and note purchases, according to a company release. The platform will operate across numerous asset classes and different U.S. regions.
Stockdale Capital Partners' new credit platform will prioritize office, life sciences and hospitality assets, according to a company release. The platform will also deploy capital across other asset classes and different U.S. regions through senior bridge loans, mezzanine debt, special situation investments and note purchases.
Stockdale Capital Partners manages $4.5 billion of assets, according to co-founder and managing partner Daniel Michaels. Michaels said the firm aims to leverage its operating platform to originate debt investments with greater scale, focus and consistency through the newly launched credit platform.
Approximately $17 billion of data center CMBS has been issued since the start of 2025, more than triple the amount sold during the previous two years. Data centers now represent roughly 8% of new commercial property bond deals. Citigroup forecasts issuance will rise about 50% next year, reaching $18 billion to $20 billion.
Barclays data show AAA data center bonds averaging 1.65 percentage points over their floating-rate benchmark. That compares with 0.93 percentage points for office, 1.05 for retail, and 1.25 for industrial. A recent $356 million bond on a 30-megawatt Illinois facility also priced wider than initial guidance.
Investors are widening their underwriting lens to cover power access, grid capacity, cooling systems, computing density, tenant concentration, and technology-driven obsolescence. Beach Point Capital Management's Ben Hunsaker said tenant identities and lease details may remain confidential, which complicates underwriting. CWCapital's Alex Killick said his firm is developing new stress tests for the sector.
Axonic Capital has responded cautiously and keeps data centers a small portfolio allocation, according to portfolio manager Steven Jury. Axonic also emphasizes diversification across tenants, uses, and geographies. Jury said Axonic questions what these facilities will be worth in five, 10, or 20 years, citing changes in technology, tenant demand, and supply as major uncertainties.
Trepp's Stephen Buschbom said data center assets resemble infrastructure and technology plays more than conventional property. Technology can shorten the useful life of the underlying real estate, and new AI chips can require sharply more power and cooling, meaning a facility built around one hardware generation can lose competitiveness within a few years.
Brookfield Asset Management's affiliates agreed to buy a minority stake in American Real Estate Partners, a McLean, Virginia-based developer with a vertically integrated data center development platform. American Real Estate Partners has deployed or committed more than $30 billion across data center, residential, industrial and office assets, giving Brookfield exposure to one of the most active real estate themes.
American Real Estate Partners has deployed or committed more than $30 billion and acquired over 40 million square feet across data center, residential, industrial and office assets, according to the September 14, 2026 announcement of the Brookfield minority stake investment.
American Real Estate Partners is headquartered in McLean, Virginia, according to the September 14, 2026 announcement of Brookfield Asset Management's minority stake acquisition.
American Real Estate Partners operates across data center, residential, industrial and office assets, according to the September 14, 2026 announcement. The firm has deployed or committed more than $30 billion and acquired over 40 million square feet across these property types.
The agreement for Brookfield Asset Management's affiliates to buy a minority stake in American Real Estate Partners was announced on September 14, 2026.
Blue Owl Capital is considering creating a publicly traded data center REIT seeded with about $6.5 billion of its own assets, according to Bloomberg. The vehicle would raise additional capital through an IPO and later share sales to fund acquisitions and portfolio growth. Deliberations remain ongoing and details could change. Blue Owl declined to comment on the report.
People familiar with the matter compared Blue Owl's proposed vehicle with Blackstone Digital Infrastructure Trust, but noted Blue Owl's version would differ by using seeded assets as an anchor from the start. Blackstone's vehicle was structured as a blind pool, meaning investors bought shares before knowing which assets it would own.
Blue Owl closed its latest digital infrastructure fund in May with $7 billion of commitments. The firm has more than $319 billion of assets under management across credit, real assets, and strategic capital. Blue Owl's data center holdings include Stack Infrastructure, with operations in the Americas, Europe, and Asia.
Bloomberg Intelligence analysts Steven Tseng and Rebecca Wang projected that annual global data center capital expenditures could exceed $1.2 trillion by 2028, up from $421 billion last year. AI infrastructure spending is drawing more private-equity-backed data center companies toward public markets, according to the source.
The CRE CLO distress rate reached 28 percent in August 2026, up from 19 percent in July, according to CRED iQ data. CRED iQ senior product manager Liam Mulcahy attributed the surge to 2021 and 2022 vintage bridge loans built on rent growth projections that never materialized, with floating-rate plans now running out of runway before balloon maturities.
FSRIA 2021-FL3 is the largest contributor, with $353 million of multifamily collateral in special servicing across seven loans and $131 million moved into distress since spring 2026. ARCLO 2022-FL1 added $210 million of newly distressed collateral in August alone. Five deals account for 38 percent of all CRE CLO special-servicing balance, according to CRED iQ.
The SASB distress rate has held near 22 percent since June 2026 and has not materially worsened, according to CRED iQ. Four single-borrower office and lab deals account for 64 percent of the $1.7 billion SASB distressed balance, with California, New York and Washington D.C. hosting two-thirds of that balance.
No. Distress rates for conduit, Freddie Mac and single-family rental loans have barely moved in eight months and each remain under 5 percent, according to CRED iQ data. CRE CLO and SASB are the only categories that have crossed into double digits, a divergence specific to 2021 and 2022 vintage collateral.
Office and mixed-use loans maturing over the next nine months are pricing 170 to 180 basis points above their in-place notes, according to CRED iQ, which characterizes that as the widest refinancing gap of any property type.
According to Colliers, office sector sales reached $7.6 billion in July 2026, a 31% year-over-year increase. CBD sales volumes rose 46%, driven by individual asset sales that more than doubled. Suburban sales were up 26%, boosted by portfolio activity including medical office portfolios. Office was the only commercial property type to post a price increase, with prices up 4% year over year.
Colliers reported hospitality July volume rose 61% year over year to $2.5 billion. Gains were led by full-service hotels, which saw stronger portfolio and individual asset sales. Limited-service volume also rose with a focus on portfolio sales. However, the hotel CPPI fell 8.6% year over year and trailing 12-month cap rates rose to 8.3%.
According to Colliers, multifamily July sales totaled $12.4 billion, down 16% year over year. Individual asset sales declined 25%. Portfolio and entity activity rose 21%, but Colliers noted that gain was attributable to one large California portfolio transaction; without it, mid- and high-rise portfolio sales would have been down year over year. The apartment CPPI also fell 4.1% since last July.
Colliers reported industrial sector July volume was flat year over year at $9 billion. Portfolio and entity activity rose 9% while single-asset sales fell 4%. Warehouse volume fell 1% but flex sales increased 5%. The industrial sector's trailing 12-month cap rates rose to 6.6% from last year's 6.3%, according to Colliers.
Colliers reported retail July sales volume of $4.7 billion, down 13% from a year earlier. Portfolio and entity sales fell sharply, while single-asset activity was down 1%. Shopping centers continued to be a standout category within retail. The retail CPPI declined 0.9%, according to Colliers.
Lone Star Funds completed the acquisition with TMG Partners and Grove as joint-venture partners. TMG Partners and Grove will operate the portfolio. The source does not disclose additional details about ownership stakes or management responsibilities beyond those roles.
The portfolio consists of Class A, predominantly single-story research-and-development real estate assets in Silicon Valley. The source describes the space as laboratory and R&D style, sitting at the intersection of life sciences and technology-related real estate demand.
Lone Star Funds described the acquisition as the largest institutional aggregation of Class A, predominantly single-story R&D real estate assets in Silicon Valley. The characterization comes from the buyers; the source does not cite an independent third-party verification of that claim.
According to the source, the portfolio targets laboratory and research-and-development style space at the intersection of life sciences and technology-related real estate demand, and the transaction adds to the life sciences and innovation-property market in Northern California.
Keppel DC REIT and sponsor Keppel agreed to pay 190 billion yen, or about $1.19 billion, for a 90% effective interest in two data centres in Tokyo, according to Reuters.
Keppel DC REIT is funding its contribution to the acquisition partly through a private placement aimed at raising at least S$600 million, with those proceeds directed toward the transaction.
Keppel DC REIT will hold an 88.62% effective interest in each of the two Tokyo data centre assets. Sponsor Keppel will retain 1.38% and the existing operator will keep 10%.
According to the report, the Keppel DC REIT transaction highlights continued investor demand for data-centre assets even as capital-raising remains necessary to close large transactions.
JVP Development is committing $37M of its own money to the speculative office project in Frisco, Texas, according to Bisnow's Dallas-Fort Worth reporting dated August 1, 2026. The developer is moving forward without a tenant secured.
JLL Capital Markets arranged the $62.5 million loan on behalf of the borrower, a partnership between Wheelock Street Capital and Camber Development. Blue Light Capital provided the financing. The JLL team was led by Senior Managing Directors Brett Paulsrud and Steve Klein, Director Ryan Parker, Vice President Hugh Doherty, and Analyst Libby Horton.
The 148,458-square-foot first building at 44 Middlesex Turnpike delivered at the end of 2024 and is currently 32% leased to Fourth Power, an energy sustainability and grid resilience company. Fourth Power is commercializing a long duration thermal energy storage system that spun out of MIT, where its founder is a Professor.
The facility features 36-foot to 40-foot clear heights in high-bay areas, 8,600 amps of power per building totaling 17,200 amps across the campus, flexible mezzanine space with 20-foot clear heights, 40-foot by 40-foot column spacing, and six loading docks per building. The reinforced roof structure accommodates rooftop mechanical systems.
The campus includes a 12.3-acre pad-ready development site adjacent to the existing building, entitled for an additional 147,000 square feet. Upon completion of that second phase, the campus at 44 Middlesex Turnpike would total 295,000 square feet of advanced manufacturing space.
According to the JLL announcement, Greater Boston has experienced significant growth in advanced manufacturing tenant demand over the last 12 months, driven by venture capital investment in physical AI and robotics, aerospace and defense, energy storage and climate technology, semiconductor development, 3D printing, medical devices, and biomanufacturing. Massachusetts ranks second nationally in advanced manufacturing investments since 2020 and first in per capita investment.
Peter Muoio of SitusAMC said investors view commercial real estate as stable in turbulent times relative to other asset types, amid circumstances including tariffs, the war in Iran, and heightened uncertainty. Muoio noted that cash has also been strong for similar reasons, while stock and bond markets can exhibit wide fluctuations.
Peter Muoio of SitusAMC said the preference to buy and the preference to sell met in the second quarter of 2026 for the first time in several years. Muoio said this suggests a potential meeting of the minds between buyers and sellers and that if market perceptions are becoming more aligned, it can indicate a growing potential for more transactions to take place.
Peter Muoio of SitusAMC said that since the Federal Reserve raised interest rates in June 2022, CRE transaction flow has averaged approximately $42 billion per month. Muoio said the average in the year prior to that period was $192 billion per month, representing a significantly lower deal flow environment that has persisted for four years.
SitusAMC's ValTrends 2Q 2026 data showed retail investor preference at 21 percent for the quarter versus 9 percent a year earlier. Office preference stood at 11 percent in second quarter 2026, still significantly higher than the persistent zero-to-2 percent range of recent years. Peter Muoio said investors are looking more broadly across CRE asset classes than they recently have.
Peter Muoio of SitusAMC said the industry needs less uncertainty and lower interest rates, which he described as intertwined. Muoio noted the 10-year Treasury was at 4.7 percent in recent weeks and said that if uncertainty and interest rates begin to ease, it would allow the volume of transactions, refinancings, and investments to begin to open back up.
Invesco Real Estate acquired Crossroads Logistics Park. The sellers were Brennan Investment Group and Grandview Partners. JLL Capital Markets represented the sellers in the transaction, with the JLL team led by Senior Director Dave Andrews, Senior Managing Director Pete Pittroff, SIOR, and Director Michael Scarnato.
Crossroads Logistics Park reached 100% stabilization during the marketing process after leasing its final suite. The tenant roster is described as diversified and credit-worthy, and the average remaining lease term exceeds five years, according to JLL.
Crossroads Logistics Park is located near the intersection of Interstate 85 and Interstate 26, less than 10 miles from Greenville-Spartanburg International Airport, less than 90 miles from Charlotte Douglas International Airport, and has immediate access to the South Carolina Inland Port and the nearby BMW Manufacturing campus, according to JLL.
Brennan Investment Group, a Chicago-based private real estate investment firm, has acquired or developed $6.5 billion in industrial real estate in 30 states since 2010. The company's current portfolio spans 30 states and encompasses approximately 58 million square feet.
Invesco Real Estate had $86.3 billion in real estate assets under management as of December 31, 2025, with 596 employees and 21 regional offices across the U.S., Europe, and Asia Pacific, according to Invesco Real Estate.
Data centers were the primary driver, accounting for nearly half of July's $74.4 billion in total commercial real estate sales at $33.8 billion, according to Bisnow citing MSCI's Capital Trends report. The largest single transaction was the BlackRock Global Infrastructure Partners and Abu Dhabi's MGX acquisition of Aligned Data Centers in a $40 billion deal.
According to MSCI's monthly Capital Trends report as cited by Bisnow, urban office sales rose 48% year over year in July and suburban office sales rose 28% year over year, indicating a broad acceleration across both office submarkets.
BlackRock Global Infrastructure Partners and Abu Dhabi's MGX acquired Aligned Data Centers in a $40 billion transaction, according to Bisnow. The deal was cited as the lead transaction behind data centers accounting for $33.8 billion of July's total commercial real estate volume.
Hotel sales rose 61% year over year in July, according to MSCI's monthly Capital Trends report as cited by Bisnow, making hospitality one of the sectors showing broadening activity alongside data centers and office properties.
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