🤦‍♂️ With mortgage rates stuck at 7%, the Fed is keeping home affordability out of reach
🏢 Office leasing picks up while more investors take notice
👑 Cooper Union reclaims the Chrysler Building—but what will they do with it?
📚 Learn to develop a local real estate project, sell into owners, and raise capital

Data Viz of the Week: Insurance Non-Renewals Spike

While rising property insurance costs are an issue almost everywhere, some states have a compounding problem: spiking non-renewals as insurers pull back from high-risk and highly-regulated markets. The New York Times offered an excellent visual of where non-renewals are hitting hardest.

The tl;dr? Insurers are most likely to leave markets that are at higher risk for fires and floods—as well as those with heavy regulatory burdens and price controls, like California.

Upcoming Thesis Driven Courses & Classes

Sharpen your real estate IQ on capital raising, selling into real estate owners, developing local real estate projects, and more.

Upcoming Courses

• February 10: Fundamentals of CRE (💻 Online): A bootcamp providing an insider’s view of “a day in the life” of key industry stakeholders, with real-world insights and applications - Sign up

• February 24: Fundamentals of Capital Raising (💻 Online): Insider’s guide to raising capital for real estate projects & platforms–from individuals, family offices and institutional investors - Sign up

• February 24: Introduction to Development (💻 Online): A first-person POV simulation for aspiring developers to learn to source, underwrite and finance a local real estate project - Sign up

• February 24: Selling Into Real Estate Owners (💻 Online): A bootcamp for people selling technology and products into the real estate industry - Sign up

• March 4 & 5: Fundamentals of CRE (🗽Live in NYC): A bootcamp providing an insider’s view of “a day in the life” of key industry stakeholders, with real-world insights and applications - Sign up

• March 18 & 19: Fundamentals of Capital Raising (🗽Live in NYC): Insider’s guide to raising capital for real estate projects & platforms–from individuals, family offices and institutional investors - Sign up

Thesis Driven Classes—1-hour micro courses on specific topics—are now available on Eventbrite here!

Three Articles We Loved from Last Week

It’s not easy keeping up with everything. Here are three articles we loved from the past week that you may have missed:

1. (MarketWatch) Mortgage rates are stuck at 7% as Fed holds steady on interest rates

   The Federal Reserve’s decision to keep interest rates unchanged is prolonging high mortgage rates, with the 30-year fixed-rate mortgage stuck around 7%. This has led to decreased affordability for homebuyers, driving down pending home sales by 5.5% in December, according to the National Association of Realtors. The Northeast and West have seen the biggest declines in contract signings as high borrowing costs limit purchasing power. With no immediate rate cuts in sight, the housing market remains in a challenging position, with affordability concerns persisting into 2025.

2. (WSJ)  Investors Who Shunned the U.S. Office Market Are Coming Back

   After years of turmoil, investors are returning to the U.S. office market, with sales activity rising to $63.6 billion in 2024—a 20% increase from 2023. This renewed interest is driven by opportunistic purchases of undervalued buildings and a resurgence in demand as businesses require more office space for returning workers. Premium office buildings are experiencing shortages and rent hikes, signaling a market rebound.

3. (New York Post) Cooper Union wins feud with Aby Rosen over Chrysler Building - but landmark’s future remains in limbo

   Cooper Union has emerged victorious in its legal dispute with developer Aby Rosen over the leasehold of the iconic Chrysler Building. The court ruled in favor of Cooper Union, citing Rosen’s failure to pay $21 million in ground rent. Despite this legal win, the future of the landmark remains uncertain as Cooper Union explores options to modernize the building amidst challenges like high office vacancies and outdated infrastructure.

Developer of the Week

Brooklyn’s Pacific Park project—stopping and starting at various points over the past 20 years—may be getting a fresh start as Cirrus Real Estate looks to replace Related Companies, which pulled out of the project last week.

While Cirrus’s doesn’t appear to have a long track record of ground-up development, they are led by Tony Tufariello, former Global Head of Real Estate at Fortress.

—Brad and Paul