Market Updates

NYC Real Estate Tax Revenue Hits Record High. New York City's real estate sector contributed a record-setting $37 billion in tax revenue in 2024, according to the Real Estate Board of New York. That figure represents nearly half of the city's total tax revenue, reaffirming how crucial the sector remains for local budgets—even as office vacancies persist. The surge is credited to strong residential sales and continued investor appetite for high-value commercial assets. (NY Post)

Manhattan Office Tenants Eye New Homes. Several large tenants in Manhattan, including French creative agency Havas and hedge fund 2 Sigma, are reevaluating their office footprints as part of cost-cutting and consolidation efforts. The shifting demand is placing added pressure on landlords, many of whom are already grappling with rising vacancies. These moves highlight how hybrid work is still influencing real estate decisions years after the pandemic. (NY Post)

San Antonio and Austin See Surge in Data Center Development. The San Antonio-Austin region has experienced significant growth in data center development, driven by increasing demand for artificial intelligence and cloud services. Over the past five years, colocation data centers have quadrupled, with the market now boasting 646 megawatts of data centers, 664 megawatts under construction, and another 1,229 megawatts planned. This expansion, led by companies like Microsoft, underscores the region's growing importance in the data infrastructure landscape. (San Antonio Express-News)

Tariff Policy Uncertainty Clouds Industrial Real Estate Outlook. A new wave of uncertainty surrounding U.S. trade and tariff policies is sending ripples through the industrial real estate sector. Developers and investors are increasingly concerned about the potential impact on construction costs, material availability, and supply chain stability. While the sector has benefited from strong e-commerce demand and reshoring trends, industry leaders warn that ambiguous tariff enforcement could delay projects and inflate pricing. The policy ambiguity is also making underwriting more difficult, with some firms pausing acquisitions or slowing speculative developments until clearer guidance emerges. (Globest)

Deal Highlights

IBM Lists Abandoned Southbury Campus for Sale. IBM has placed its vacant Southbury, Connecticut, campus on the market. The property includes over 865,000 square feet of office space across eight buildings on 220 acres, representing one of the state's largest complexes. (CT Insider)

GSA Reduces Federal Buildings for Sale. The General Services Administration has reduced its list of federal buildings for sale from 440 to just 8, including assets in Houston, St. Louis, and Indianapolis. This pivot follows bipartisan criticism that the earlier strategy lacked proper vetting and threatened long-term operational needs. The government says the revised plan could still save up to $430 million annually through increased efficiency. (SF Chronicle)

Tech & Innovation

AI, Blockchain, and VR Redefine Commercial Real Estate in 2025. Technology is rapidly transforming commercial real estate in 2025, with artificial intelligence, blockchain, and virtual reality leading the way. From predictive maintenance powered by AI to blockchain-secured transactions and immersive property tours via VR, these innovations are enhancing efficiency, transparency, and tenant engagement. Industry leaders note that the companies embracing these tools are better positioned for growth, while those lagging face competitive risk. The sector is expected to see even more disruption as proptech investment rebounds and digital infrastructure becomes essential. (International Business Times)