Real Estate

"Across the United States, more than 400,000 warehouses—and millions of other commercial rooftops—sit as underutilized assets. Each one has the potential to generate stable cash flow without using new land or disrupting operations. These rooftops can fit over 200,000 MWs of new solar and battery storage—more than enough to meet our load growth through 2030.   For real estate owners, this is a rare moment where economic and environmental value align. With energy costs rising faster than inflation and power demand surging from data centers and onshoring, the U.S. needs every available electron—preferably on rooftops. That creates a once-in-a-generation opportunity for rooftop solar paired with batteries to become a core source of local power generation."

The recent decline in mortgage rates—staying below 6.5% for most of September—is a meaningful shift for housing. Though it may not feel like much for those accustomed to 2% or 3% rates, even small drops can have a major impact on affordability.   For example, moving from 7% to 6.5% puts 2.125 million more households in a position to buy. If rates were to fall to 6%, that number more than doubles, pricing in another 4.246 million households.   That said, it's important to consider the underlying reason behind the decline: the cooling labor market. Our historical research shows a consistent two-phase dynamic between the economy and housing:   Phase 1. A slower job market initially reduces housing demand despite lower rates. This is driven by job insecurity and weaker consumer confidence. Phase 2. Falling interest rates eventually outweigh those headwinds, helping revive sales activity.   Right now, the housing market is still in Phase 1. This is consistent with the historical pattern where housing acts as a leading indicator—it slows before the broader economy but also turns the corner sooner. Zonda Alexander Edelman Trevor Tetzlaff Sean Fergus Sarah Bonnarens Tim Sullivan Keith Hughes Cameron McIntosh Kyle Cheslock

Every time a card payment is processed, 𝘁𝗵𝗿𝗲𝗲 main types of fees are involved. Here’s a simple breakdown of the Three Core Fees: 1️⃣ Interchange Fee This is paid by your acquiring bank (or payment processor) to the cardholder’s bank (the issuer). It’s set by the card networks (like Visa and Mastercard; sometimes regulated), and is designed to cover things like fraud, credit losses, and infrastructure costs. 2️⃣ Scheme Fee Charged by the card networks themselves, this fee covers the operation of the payment system (“rails” that process the transaction). 3️⃣ Acquirer Markup This is the fee your acquirer or payment service provider (PSP) charges you, the merchant. It includes their costs, risk management, and profit margin for processing and settling the payment. The total cost a merchant pays is called the Merchant Service Charge, which is the sum of these three components. The Main Pricing Models: ► Bundled Pricing All fees are grouped into one flat rate. This is very common with small businesses. It’s easy to understand but doesn’t provide insight into what you’re actually paying for. ► Interchange+ The interchange fee and the acquirer’s fee are shown separately, but the scheme fee is typically bundled with the markup. This model offers some transparency. ► Interchange++ Each fee—the interchange, scheme, and acquirer markup—is itemized separately. This is the most transparent model and is favored by larger or multi-country merchants who want to track costs precisely. Who Chooses the Pricing Model? Most acquirers and PSPs decide what pricing model you’re offered. Unless you negotiate or have significant transaction volume, you’re likely to get bundled pricing by default. Larger or more experienced merchants who understand payments often push for Interchange++ for its clarity and fairness. Smaller merchants often aren’t aware that alternatives exist or find it difficult to compare offers. How Interchange Fees Vary Globally: Some regions (like the EU, UK, China, and Brazil) cap interchange fees to lower costs for merchants and stimulate competition. The US regulates only part of the system—such as capping debit card fees for large banks (the Durbin Amendment)—while credit card interchange remains uncapped and usually higher. Other countries, like India and Brazil, regulate interchange as part of broader financial inclusion goals. In markets with stricter regulation, merchants often benefit from lower, more predictable fees, making it easier to accept cards. Where fees are higher and less regulated, issuers can offer consumers more rewards (like cashback), but those costs are passed back to merchants—and sometimes their customers. Every model shifts the balance of costs and benefits between banks, merchants, and consumers in different ways. More info below👇, and I highly recommend reading my complete deep dive article about Interchange Fee and what factors impact the rate: https://bit.ly/44T4VJA

*UPDATED* (and still true): When you build "luxury" new apartments in big numbers, the influx of supply puts downward pressure on rents at all price points -- even in the lowest-priced Class C rentals. Here's evidence of that happening right now: There are 21 U.S. markets where Class C rents are falling at least 4% YoY. What is the common denominator? You guessed it: Supply. Of those, all but one have supply expansion rates ABOVE the U.S. average. In Florida -- which continues to make itself a supply magnet with strong demand + the boost from the new Live Local legislation -- NINE metro areas made the list, with Class C rent cuts exceeding 4% year-over-year. Other key markets nationally to highlight: Ultra-high-supplied big markets like Austin, Phoenix, Salt Lake City, Raleigh/Durham and Atlanta are all seeing sizable Class C rent cuts of at least 5%. Tampa, Dallas, Charlotte and Orlando cut at least 4%. Small markets on the list include Provo, Greenville, Colorado Springs, and Wilmington (NC). Bear in mind that apartment demand is NOT the issue in any of these markets. They're all demand magnets. Sure, they've seen some moderation / normalization for in-migration and job growth, but (among the larger metros) every single one of them ranks among the national leaders for net absorption. (Interestingly, btw, Class C rents are falling materially MORE than Class A rents in most of these markets.) Simply put: Supply is doing what it's supposed to do when you add a ton of it. It's a process academics call "filtering" -- which happens when higher-income renters in Class B+/A- apartments move up into higher-priced new Class A+ units ... and then Class B+/A- units see vacancy increase, so they cut rents to lure up Class B renters ... and they Class B cuts rents to lure Class C renters. And down the line it goes. Filtering works best when we build a lot of apartments. We didn't see this phenomenon play out as clearly in past cycles when supply was relatively limited -- and failed to keep pace with demand. We probably won't see it in future years, either, as supply inevitably plunges and (barring some shock) could revert back to falling short of demand in high-growth markets. Less anyone still doubt, the inverse is true as well: Class C rents climbed at least 4% YoY in 22 of the nation's 150 largest metros, and nearly all of them have limited supply. So you can't just blame affordability ceilings when Class C rents are climbing briskly in low-supply markets while falling in high-supply markets. Most new construction tends to be Class A "luxury" because that's what pencils out due to high cost of everything from land to labor to materials to impact fees to insurance to taxes, etc. So critics will say: "We don't need more luxury apartments!" Yes, you do. Because when you build "luxury" apartments at scale, you will put downward pressure on rents at all price points. #multifamily #affordability #housing #rents

The Great Wall of CRE There is a massive CRE debt wall that has been built, and it looks very scarry. This wall is newsworthy because it hasn’t previously been reported how massive the wall is. Last week, Mortgage Bankers Association released a report entitled “Commercial Real Estate Survey of Loan Maturity Volumes,” which shows $930B of CRE loans are now scheduled to mature in 2024. This figure is ~70% higher vs. $544B of CRE loans previously reported by Bloomberg/Trepp data. The bar chart (below) shows the reported CRE debt maturity wall reported 1 year ago. So how did the 2024 maturity wall grow so massively? That is my question of the day. You are correct if you answered “extensions.” That’s right, old-fashioned kick the can down the road is why a huge cohort of the 2023 CRE maturing loans slipped into the 2024 maturity cohort. Amend and Extend and Pretend has become the key to avoiding default and that’s exactly what many CRE owners/operators have done, with the willing help of the lender. In all my years, I have never seen such a massive absolute number or percentage of maturities amended and extended. A total of $5.6T CRE debt matures in the next decade. Banks are the largest lender, accounting for 50% of all CRE debt, followed by CMBS market, which has securitized over $1T in CMBS loans. The opportunity to work with banks on asset sales & capital solutions; to buy CMBS dislocation, the fallen angels as rating downgrades occur and to provide fresh loans at the new valuation reset is what many of us are focused on. 2024-2025 will likely prove to be the period that determines which loans will pay off, which will be restructured, and which will have a hard default. The Great Wall of CRE: 2024 has grown to $930B according to MBA!

Maine just legalized 3 units per lot statewide. No planning board approval needed for 4 units or fewer. But the real breakthrough isn't the density. It's what they eliminated: Maine has seen the biggest house price growth in the US since 2019. The median cost is $400k, nearly double what it was 6 years ago. Radical change was needed. So they broadly legalized ADUs as part of the larger package of reforms. Including sweeping changes to zoning and land use regulations. Here's what LD 1829 actually does: 1/ Density: • Maximum 2 off-street parking spaces for every 3 units • Three dwelling units per residential lot is now legalized • Affordable housing developments get 2.5x the base density allowance Municipalities are now required to permit multiple dwelling units per residential lot. 2/ Review Processes: • All planning board members must attend mandatory training • No planning board approval needed for projects with four or fewer dwelling units • Wastewater verification and subdivision threshold "loopholes" have been simplified Required planning board approval for smaller projects is prohibited. 3/ Other Changes: • Owner-occupancy mandates for ADUs eliminated • Uniform dimensional standards for multiple-unit dwellings same as single-family homes • Minimum lot sizes in growth areas capped at 5,000 SF with 1,250 SF per dwelling unit density This is the density breakthrough. Maine now allows up to 4 units on lots in growth areas, with just 1,250 SF of lot area per unit. That's 4x the housing on the same land. Small developers can finally compete without needing millions in land acquisition. Maine eliminated barriers that made small-scale multifamily difficult to build. The timeline for these changes: Applies immediately: Fire sprinklers, ADU definition, and mandatory training. July 1, 2026: Core zoning and density changes. July 1, 2027: All other municipalities. The bigger picture: Maine has shifted how housing density and development approval is processed. Something more states should follow. Read the full report linked in the comments.

The best negotiator I know is completely silent 70% of the time. Last year she closed $400M in deals saying almost nothing. In high-stakes negotiations, the person who truly understands human psychology wins. Not the loudest voice. Not the biggest title. The one who reads the room. FBI negotiator Chris Voss spent decades getting terrorists to release hostages. Now he teaches business leaders the same principles. And here's what surprised me most: These aren't secret tactics. They're learnable skills. Anyone can become a skilled negotiator. You just need to understand how humans actually make decisions. These 7 techniques are a great starting point. They've worked in life-or-death situations and multi-billion-dollar deals. 1. Strategic Silence teaches patience. Most of us rush to fill quiet moments. But silence creates space for better offers. Practice counting to 10 before responding. It feels eternal. It works. 2. "How" over "Why" shifts dynamics. One word change. Completely different conversation. Try it in your next meeting. Watch defensiveness disappear. 3. Addressing Fears builds trust fast. Name what they're worried about before they do. It shows you understand their position, not just your own. 4. Mirroring is almost unconscious. Repeat their words. They elaborate without realizing it. Simple technique. Profound results. 5. Getting to "No" seems counterintuitive. But "no" creates boundaries. Boundaries create honest dialogue. Real deals happen after "no," not before. 6. Confirming Concerns creates momentum. Summarize their position accurately. They feel heard. Feeling heard leads to flexibility. 7. Listing Objections removes their power. Say their doubts out loud first. They can't weaponize what you've already acknowledged. Every CEO needs this skill. Every leader benefits from understanding it. Every professional can learn it. The question isn't whether you need these skills. It's when you'll start developing them. P.S. Want a PDF of my Negotiation Skills Cheat Sheet? Get it free: https://lnkd.in/dDxE5v3B ♻️ Repost to help a leader in your network. Follow Eric Partaker for more negotiation insights.

Every card payment involves three core fees - yet most merchants don’t know where their money goes. Here is a break-down. 𝗧𝗵𝗲 𝟯 𝗳𝗲𝗲 𝘁𝘆𝗽𝗲𝘀: 1. Interchange – Paid from the acquirer to the issuer (the cardholder’s bank). Set by card networks, often regulated, and meant to cover fraud, credit risk, and infrastructure. 2. Scheme Fee – Charged by the card networks (Visa, Mastercard, etc.) for operating the rails. 3. Acquirer Markup – What the acquiring bank or PSP charges the merchant to process the transaction, handle risk, and settle funds. Together, these form the Merchant Service Charge. 𝗧𝗵𝗲 𝟯 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗺𝗼𝗱𝗲𝗹𝘀: 1. Bundled: All three fees are merged into one opaque rate. Common among smaller merchants. Simple, but lacks visibility. 2. Interchange+: Interchange and acquirer fee shown; scheme fee included in the markup. Partial transparency. 3. Interchange++: All three fees itemized. Full transparency. Preferred by larger or multi-market merchants. 𝗪𝗵𝗼 𝗱𝗲𝗰𝗶𝗱𝗲𝘀 𝘁𝗵𝗲 𝗺𝗼𝗱𝗲𝗹? - The acquirer or PSP typically offers the pricing model, and unless a merchant has the volume or experience to negotiate, they’re often placed on bundled pricing by default. - Larger merchants or platforms - who understand the mechanics and can estimate true costs - usually push for Interchange++ for its transparency and fairness. - Smaller businesses rarely ask, either because they don’t know the models exist, can’t easily compare offers, or assume it’s not worth the effort. 𝗜𝗻𝘁𝗲𝗿𝗰𝗵𝗮𝗻𝗴𝗲 𝗳𝗲𝗲𝘀' 𝗰𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻: Some jurisdictions cap interchange fees (EU, UK, China, Brazil) to reduce merchant costs and promote competition. Others (US) regulate only parts of the system - e.g., debit under Durbin for large banks - while leaving credit cards uncapped. Why? It’s a mix of politics, lobbying, market structure, and regulatory philosophy: - In Europe, regulators treat interchange as  as insufficiently competitive and have imposed caps to bring more balance and transparency. - In the US, the market relies more on competition, resulting in higher fees. - Emerging markets like India and Brazil regulate interchange as part of broader financial inclusion efforts. - In regulated markets, lower and more predictable fees help merchants manage costs and often support broader payment acceptance. In unregulated markets, higher interchange allows issuers to fund consumer perks like cashback and rewards - but merchants may face higher costs, which can influence pricing or acceptance choices. Each model shifts value differently across the ecosystem, affecting how costs and benefits are distributed between banks, merchants, and consumers. What's your experience? Opinions: my own, Graphic sources: Paypr.work [ˈpeɪpəwəːk], Truevo, Panagiotis Kriaris 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

This time of year, EVERY YEAR, all of my clients, colleagues, friends, and family ask: "what is going to happen with real estate next year?!" So, here are my honest thoughts for 2024: Warning: I may not have a crystal ball, but I do have over 15 years of experience in selling luxury real estate with over $6B worth of transactions under my belt. However, it's still important to note that these are nothing more than educated guesses. 1. We are going to have even greater BIFURCATED MARKETS. Some industries are returning to pre-COVID patterns, while others are now permanently changed. As a result, there is significant interest in the repositioning of big box retail and commercial space. 2. Stemming from the increase in work from home, there will be more NATIONAL SEARCHES. People are now expanding their searches drastically. Rather than looking at comps in a building, neighborhood, or city, they're looking comps across multiple states! 3. SUBURBS are on the rise. This is driving up the demand for bigger homes with more amenities and privacy. Transaction volume is down by over 50% and listing volume is down by over 20%... yet median pricing is up by almost 5%. This creates more tax dollars for the suburbs, so if you're an investor, pay attention to what the municipalities are doing with that money (schools, restaurants, parks, etc.). 4. BRANDED RESIDENCES will be in strong demand. Since 2010, we've seen 40% growth in branded residences – and buyers have proven to be willing to pay a premium for them. 5. DOWNTOWNS built around professional workers will feel immense pressure. Don't get me wrong: Downtowns are not going to go away... but stemming from my 2nd and 3rd points, we are going to see even greater pressure on dense living spaces. 6. Investors are going to become BEARISH on real estate. I hesitate to talk about this because I'm in the real estate business... but with high interest rates, low supply, and low transaction volume, fewer investors are going to be looking to acquire property (in the near term!). 7. Prices are going to continue to... INCREASE! I know – this sounds crazy, right? The lack of inventory is going to continue, and it's going to keep prices high and growing. As the economy continues to do well and inventory stays locked, demand is going to continue to outpace supply. And if interest rates do come down... if you think prices are high now, just get ready. 8. Interest rates will actually STABILIZE. I don't think interest rates are going to plummet, but if unemployment stays low, the Fed will keep interest rates stable. – P.S. If you want to hear about each of these predictions in even MORE detail, check out my newest video on my second YouTube channel, More Ryan Serhant. – Every year can be the GREATEST year of your life. Remember, markets shouldn't dictate your outcomes. They should only dictate your strategy. Ready. Set. GO!

What if shipping containers become the most disruptive real estate asset of the next decade... what do you think about this implementation? AI is turning steel boxes into: 🏡 Luxury villas 🏢 Modular tech campuses 🌱 AI-powered vertical farms 🏥 Emergency medical units deployed in days But this is no longer “creative architecture.” This is AI-designed adaptive infrastructure. Let’s look at the numbers: + The global modular construction market is projected to exceed $150–200B within this decade, growing ~6–8% CAGR. + Construction productivity has grown less than 1% annually for decades — while manufacturing improved ~3–4% per year. Modular + AI changes that equation. + AI-driven generative design can reduce material waste by up to 20–30% through structural optimization. + Digital twin simulations can reduce project delays by 15–20% by identifying risks before physical build. + Container-based vertical farms can use up to 90–95% less water than traditional agriculture. Now combine: Containers = speed + mobility + standardized structure AI = optimization + simulation + predictive intelligence Together → programmable real estate. In high-density markets like Singapore, climate-sensitive regions, or fast-growing tech corridors, this becomes strategic infrastructure — not alternative housing. The next wave isn’t just “smart homes.” It’s: • Self-optimizing buildings • Plug-and-play campuses • AI-managed micro-cities • Rapid-deployment economic zones The companies that integrate: Generative AI + Digital Twins + IoT + Modular Engineering …will redefine urban development. #AI #ModularConstruction #Innovation via @diycraftstvofficial #PropTech #DigitalTwin #SmartInfrastructure #Innovationvia