Investor Index 10.31.25
Investors Shift to Defense Amid Tariff, Labor and Rate Uncertainty
Amid rising uncertainty tied to tariffs, labor costs and interest-rates, commercial real-estate investors are increasingly adopting a defensive posture, according to Marcus & Millichap’s 2026 outlook referenced in the piece. They are favoring property types with more stable cash flows and less sensitivity to economic cycles, as opposed to more speculative or highly leveraged bets. The combination of global trade tensions (tariffs), tight labor markets and uncertain rate outlooks is heightening deal caution and shifting capital toward what are perceived as safer segments within the real-estate market.
Full Article: https://www.globest.com/2025/10/30/investors-shift-to-defense-amid-tariff-labor-and-rate-uncertainty/
Real Estate Transaction Velocity is Looking Pretty Good
The article reports that although a broader recovery in commercial real-estate deal activity didn’t materialize until mid-2025 (despite prior expectations tied to anticipated Federal Reserve rate cuts), several encouraging forces are now pointing toward a pick-up in transaction velocity. According to Marcus & Millichap’s John Chang, private investors now account for roughly 59 % of the market’s transactions and CRE investment funds are raising about $30 billion per quarter (above the ten-year average of $28 billion) for deployment. Lenders—particularly banks that earlier reduced exposure—have begun loosening standards and increasing loan-to-value ratios (especially in multifamily); and with interest-rates showing signs of trending down, cap-rates stabilizing or compressing, and construction starts remaining constrained, the article suggests that the conditions for deal flow strength are aligning.
Full Article: https://www.connectcre.com/stories/real-estate-transaction-velocity-is-looking-pretty-good/
Key Bonus Depreciation Changes CRE And Rental Owners Should Know
The article explains that the recent tax law, the One Big Beautiful Bill Act (OBBBA), reinstates and makes permanent the 100% bonus depreciation deduction for qualified property acquired and placed in service after January 19, 2025—reversing an earlier scheduled phase-down under the Tax Cuts and Jobs Act. For owners of commercial real estate (CRE) and rental properties, this means that certain assets (such as personal property, land improvements or interior qualified improvement property) can potentially be fully expensed in the first year instead of being depreciated over many years—leading to accelerated tax deductions and improved cash flow. The article also highlights important considerations: the acquisition date (and when construction/placement in service actually begins) matters for eligibility; state tax conformity may vary; and strategic use of cost-segregation studies and timing of asset placement becomes critical for maximizing benefit.