01

September’s Producer Price Index rose 1.3% month over month, the largest increase since March 2022, and 6.3% annually. Energy drove much of the increase, but prices excluding food, energy and trade services also climbed 0.5% monthly and 5% annually.

So what: The report strengthens the case for keeping Fed rates elevated and could increase pressure for another hike. For CRE buyers, a deal that requires cheaper refinancing to meet its return target deserves another look; the Fed’s decision will still depend on the broader economic picture.

U.S. Bureau of Labor Statistics

02

Prologis reported 60 million square feet of lease signings during the third quarter, ending September with 95.6% occupancy across its global portfolio. Cash same-store net operating income increased 5.9%, while cash rents on rolling leases increased 23.4% over the previous leases.

So what: Older leases signed below today’s rents can provide income growth even without a surge in market rents. Owners should distinguish that embedded upside from assumptions about future market appreciation, and account for renewal costs, downtime and tenant retention.

Prologis

03

EQT signed an agreement to acquire U.S. real estate investment manager Stockbridge, which has approximately $16.5 billion in fee-generating assets under management. The transaction includes $375 million in base consideration and up to $175 million in performance-based payments, with closing expected in the first quarter of 2027.

So what: Larger managers are buying established teams, investor relationships and specialized operating capabilities. The combination could help direct more institutional capital toward industrial outdoor storage and manufactured housing, although the acquisition itself does not represent new property purchases.

EQT

04

Baron Properties acquired 426,940 square feet across seven industrial properties in metro Phoenix and Henderson, Nevada, according to Commercial Property Executive. The portfolio is fully leased to 11 regional and national tenants, with configurations serving small- and mid-bay users.

So what: Multiple tenants reduce reliance on one company, but lease expirations can still create concentrated risk. The key underwriting questions are how much income rolls in any given year and what it will cost to renew tenants or prepare vacant suites.

Commercial Search

05

U.S. retail and food services sales increased 0.8% in September to $745 billion, while August’s increase was revised upward to 1.3%. The Census Bureau’s figures adjust for seasonal and calendar differences but do not adjust for price changes, meaning higher spending can reflect higher prices rather than more merchandise sold.

So what: Higher tenant sales do not automatically justify higher rents. Retail owners should examine transaction counts, margins and store-level profitability before treating nominal revenue growth as evidence that tenants can absorb a larger occupancy cost.

U.S. Census Bureau

06

The National Retail Federation forecasts November–December retail sales will increase 4.2% over 2025 to approximately $1.013 trillion. Its forecast excludes automobile dealers, gasoline stations and restaurants, and anticipates 325,000-375,000 seasonal retail hires.

So what: A stronger holiday season could support retailer liquidity heading into lease renewals, but discounting and higher expenses may absorb revenue gains. Landlords should look for profitable sales growth before assuming the forecast translates into stronger tenant credit.

National Retail Federation