Supply and Construction Trends - Apartment construction starts are projected to decrease by 65% next year [1] - Industrial construction is also down 70% [3] - Data centers are now a larger asset class in construction than office buildings in the US for the first time [3] Rental Market and Debt Issues - Rents have gone negative in many markets, contrary to expectations [2] - Many properties with construction loans may not be able to pay off their debts at maturity [2] Population and Immigration - The US has experienced a reduction in population for the first time in 250 years, negatively impacting real estate [3] - Net exporting people is a problem for many real estate markets [4] - The country needs to encourage legal immigration, which has historically contributed significantly to GDP growth [4] Investment Opportunities - Rates are coming down, presenting opportunities to buy real estate in the US at deep discounts to replacement cost, especially in office buildings [4]

Tishman Speyer sold a Beverly Hills office building to Kilroy Realty for about $205 million, more than double the price it paid for the property a decade ago https://t.co/8e6zIRLO2t ...

Market Trends - Data center construction is about to surpass office construction for the first time in US history [1] - High rise office buildings in major US cities are selling for pennies on the dollar, indicating a significant decrease in value [1] Capital Transformation - Capital transformation from physical to digital real estate is underway, suggesting a shift in investment focus [1]