SVN North Star

SVN North Star As commercial real estate professionals with SVN North Star, we specialize in helping people improve life and business through real estate transactions.

Economic Update - CONSTRUCTION COST TRENDS• According to the Cu***ng Group’s 2026 Mid-Year Market Analysis, nonresidenti...
09/04/2026

Economic Update - CONSTRUCTION COST TRENDS

• According to the Cu***ng Group’s 2026 Mid-Year Market Analysis, nonresidential input prices closed March up 5.4% year-over-year, the largest annual increase since January 2023, with prices climbing at a 12.6% annualized pace during January and February alone.

• Beginning in April, the steel and aluminum tariff rate of 50% began applying to the full customs value of covered products rather than just the metal content, increasing import prices for framing members, panel systems, and extrusions.

• The labor outlook improved modestly. The report projects construction labor shortages will fall from 439,000 in 2025 to 349,000 by the end of 2026, the smallest gap since 2021. However, the gap is narrowing because sector spending has slowed, not because more workers have entered the market. The gap is expected to rise again in 2027 to 456,000.

• Cu***ng Group projects national construction costs to rise 4.0% to 6.0% for the remainder of the year, above their January forecast.

Economic Update - THE GEOGRAPHIC CONCENTRATION OF CMBS DISTRESS• According to CRED iQ’s July 2026 CMBS Distress Report, ...
09/03/2026

Economic Update - THE GEOGRAPHIC CONCENTRATION OF CMBS DISTRESS

• According to CRED iQ’s July 2026 CMBS Distress Report, $45.8 billion of $393.5 billion in outstanding CMBS balance across the 50 largest US markets is currently distressed, a balance-weighted rate of 11.6%. Minneapolis (55.1%), Denver (35.9%), and Oklahoma City (34.1%) lead metro rankings, each driven by a handful of very large loans. Salt Lake City sits at zero.

• Geographic concentration is notable. The Midwest’s ten metros average 22.7% distress, with Chicago (26.4%), Cleveland (23.6%), Milwaukee (23.1%), and Cincinnati (21.2%) clustered alongside Minneapolis. Portland (30.6%), Austin (28.7%), and San Francisco (21.5%) represent the highest-stress non-Midwest
markets. Phoenix, Boston, Las Vegas, and Orlando all sit near 3.0%.

• The property type driving distress has shifted materially since February. Office remains the largest source at 16.7%, down from 21.2%. Multifamily distress has more than doubled, rising from 6.0% to 13.0% in July, driven by apartment loan delinquencies in Houston, Las Vegas, Bethesda, and Dallas. Industrial remains
the clear outperformer at 1.0%.

• The rotation of distress from Office into Multifamily reflects floating-rate debt resets and slower rent growth catching up with deals underwritten during the low-rate era.

Economic Update - FOMC MEETING MINUTES• According to the minutes of the FOMC’s July 28-29 policy meeting, hawkish sentim...
09/02/2026

Economic Update - FOMC MEETING MINUTES

• According to the minutes of the FOMC’s July 28-29 policy meeting, hawkish sentiment extended well beyond the three dissenters who voted for an immediate rate increase.

• Many participants assessed that policy tightening would likely be necessary if inflation did not decline, and some questioned whether current financial conditions were sufficiently restrictive to return inflation to the Fed’s 2.0% target.

• Nominal Treasury yields rose 25 to 30 basis points over the intermeeting period, driven by higher real interest rates. Fed Funds futures markets had fully priced in a 25-basis-point hike by the September meeting and another by the end of Q1 2027.

• The minutes also revealed a discussion initiated by Chairman Warsh about reducing the number of annual FOMC meetings from eight to six, to allow more information to accumulate between decisions. No conclusion was reached, and Warsh indicated the 2026 schedule would remain unchanged.

Economic Update - CPI INFLATION• According to the latest MSCI-RCA Commercial Property Price Index, US commercial real es...
09/01/2026

Economic Update - CPI INFLATION

• According to the latest MSCI-RCA Commercial Property Price Index, US commercial real estate prices rose 0.2% year-over-year in July and 0.1% from June, implying an annualized pace of 1.2% and the slowest annual gain in the index since January 2025.

• C*D Office led all property types by a wide margin, rising 9.9% year-over-year and 1.6% from June. Suburban Office rose 4.0% annually and 0.4% monthly. C*D office now outpaces Suburban office by nearly 600 basis points annually, a reversal that began in February 2026 after Suburban had led for more than five years.

• Industrial fell 1.0% year-over-year, its second consecutive month of annual decline, down from a recent peak of 4.4% in August 2025. Retail fell 0.9% annually, though it has risen each month since March. Apartment prices fell 4.1% year-over-year, the ninth consecutive month of annual declines, and remain 22% below the July 2022 peak.

• Non-major metros (+0.8% YoY) continued to outperform the six major markets (-0.2%), with the latter now posting a slight annual decline as weakness in gateway-city prices persists.

Economic Update - CMBS ISSUANCE• According to Trepp, domestic private-label CMBS issuance reached $76.7 billion through ...
08/31/2026

Economic Update - CMBS ISSUANCE

• According to Trepp, domestic private-label CMBS issuance reached $76.7 billion through July 2026, up 6.9% from $71.7 billion in the same period in 2025.

• Single-asset, single-borrower (SASB) deals accounted for $58.0 billion of this total, with conduit deals comprising $16.1 billion.

• Office was the single largest property type in the SASB channel at 22.7% of issuance, or $17.3 billion, ahead of Industrial and Multifamily at roughly 17.3% each. Data centers appeared in SASB issuance for the first time in 2026, reflecting the sector’s growing presence in structured finance capital markets.

• Conduit issuance skewed toward Multifamily and Retail, while SASB was concentrated in Office, Industrial, and Lodging.

• The SASB channel’s Office concentration reflects selective investor appetite for trophy assets with institutional sponsors rather than a broad recovery in Office fundamentals.

Address

1801 Woodfield Drive
Savoy, IL
61874

Opening Hours

Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

Telephone

+12173663414

Website

Alerts

Be the first to know and let us send you an email when SVN North Star posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category