Blackstone Earnings Rise 48% in Q3, Driven by CRE Sales

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Good morning. Blackstone just posted a 48% jump in earnings after unloading $7.3B in real estate last quarter. With interest rates dropping, the firm says CRE is entering a new phase of recovery.

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• Healthcare investment: Dolfin Partners funded $30M in tenant improvements and equipment for a Newport Beach cancer center, supporting long-term operational growth. (sponsored)

• CRE showdown: In a World Series-style CRE matchup, Los Angeles tops Toronto with stronger performance in most sectors despite industrial weakness. 

• Global footprint: Hines will launch operations in Riyadh next year, targeting industrial, office, and mixed-use projects in Saudi Arabia’s fast-growing real estate market. 

• Lenders realign: Private-credit funds gained ground while banks lost market share in a busier-than-expected U.S. real estate debt market.

• Digital dynasty: Family offices in North America are embracing AI and succession planning while taking a cautious investment stance amid 2025’s uncertainty.

• Record year: CBRE raised its annual earnings forecast after Q3 revenue jumped 14%, fueled by booming data center demand and a rebound in office leasing. 

• Data freeze: With key government stats offline and ADP cutting access, the Fed faces growing economic uncertainty with limited data to guide policy. 

• Peace proposal: Kushner and Witkoff are proposing a $50B Gaza rebuild, blending diplomacy and real estate expertise to attract global investment.

• Flat heat: Multifamily demand is running hot with strong absorption, but high vacancies and cooling rent growth are keeping landlords from capitalizing.

• Conversion craze: Adaptive reuse hit a record in 2024 with nearly 25,000 new apartments delivered, led by hotel and office conversions. 

• Market entry: Federated Hermes is taking an 80% stake in FCP to expand its private markets reach and enter U.S. multifamily. 

• Affordably strong: Affordable housing operators saw NOI rise 5.6% in 2025 thanks to slowing expenses and steady income gains. 

• Refi round: Sentinel landed a $67.5M Fannie Mae loan to refi its recently acquired 386-unit Rockwell at Crown property in Gaithersburg, MD. 

• Survival mode: Landlords are advised to stay patient, communicate clearly, and prepare for subsidy delays as the government shutdown threatens Section 8 rent payments.

• Sector reset: U.S. industrial demand surged to 60M SF in Q3 2025 while new construction hit a seven-year low. 

• Data backbone: AI and cloud growth are reshaping data center demand, favoring energy-efficient, inference-focused facilities over speculative generative AI builds.

• Tariff tailwind: Tariffs and reshoring are driving industrial growth in the South and boosting East Coast logistics. 

• Mega loan: Madison Realty Capital has provided $654M in financing to 2020 Acquisitions for its 4.1M SF Central 9 Logistics Park in Old Bridge, NJ.

• Retail rush: Retail rents in North Dallas suburbs like Frisco, Celina, and Prosper are hitting $50/SF as high-income demographics and construction costs fuel demand.

• Bargain shopping: Namdar Realty is buying Chicago’s One North State retail space for $8.3M, down from $54.5M in 2004.

• Strategic buy: Michael Comras is set to buy a Lincoln Road retail portfolio for $140M — less than half its 2014 value — as the area begins a comeback.

• Y'all street: Wells Fargo’s $570M North Texas campus cements DFW’s rise as a national financial hub.

• Office underdogs: Smaller markets like Nashville, Columbus, and Salt Lake City are leading the office sector’s quiet rebound, with Class A spaces outperforming. 

• Office optimist: CEO John Santora says WeWork is back with stable leadership, rising occupancy, and a renewed belief in in-person work.

• Grand expansion: Green Street Advisors is growing its NYC footprint, tacking on 7K more square feet at Marx Realty’s 10 Grand Central. 

• Suite addition: Premier Workspaces opened a new coworking site in El Segundo, expanding its LA-area presence to 31 locations.

• Revised outlook: Wyndham is lowering its 2025 outlook after a soft Q3, but is betting on pipeline growth and new loyalty perks to regain momentum.

• Fraud fallout: LuxUrban Hotels collapsed into Chapter 7 liquidation amid fraud claims, unpaid taxes, and $123M in debts.

• Waldorf reborn: After eight years and $2B, the iconic Waldorf Astoria has reopened with luxury condos, lavish amenities, and a design that blends history with high-end living.

📈 CHART OF THE DAY