🐫 Happy Hump Day. I’m still stuffed from Thanksgiving last week. It was my wife & I’d first year hosting for our family- what a great time! To recap: I fried a turkey, she made sweet potato casserole. My MIL made the rest. It was delicious. Stoked for next year!

↗️ Capital Markets: Two weeks ago, I went to the ULI Capital Markets Conference on Kiawah Island. Heavy hitters were in the room: Charleston’s Mayor, Greystar, EastWest Partners, JPMorgan—you name it. The stuff they shared wasn’t just interesting; it’s the kind of insight that can actually move the needle for you. Here’s what you need to know to get ahead.

The Scoop
Charleston’s Mayor Gives the Inside Story

Charleston’s TIF Districts:
Mayor Cogswell gave a masterclass on how TIFs (Tax Increment Financing districts) are reshaping Charleston. Think of it like using tomorrow’s tax dollars to pay for today’s infrastructure. Some highlights:

• Union Pier TIF: Stormwater and streets are getting a glow-up so developers can move in.

  

• Cooper River TIF: Delivered over 500 affordable housing units and reignited The Lowline Park.

• Magnolia Plan TIF: Cleaning up the site and installing stormwater systems for future projects.

The mic-drop moment?

That’s a wild stat and a big signal that the market’s cooling on new rental construction. Short-term relief? Sure. Long-term? Not great. We’re still way behind on housing supply.

Encouragingly, the city is shifting its mindset from being an enforcer to becoming a partner for developers and citizens. Public-private collaboration will be key to managing Charleston’s growth, and it’s a welcome change in tone.

Paul’s Market Journal

Office Space = Dead

This wasn’t news, but it’s still a tough pill: Office space is toast. Lenders won’t touch it, equity isn’t writing checks, and the only exception is Class A office in premium spots.

What’s hot?

• Build-to-Rent (BTR)

• Marinas 🛥️

• Single-family rentals 🏡

• Manufactured Housing (MHP)

• Unanchored strip malls (yes, seriously)

Signs of Life in Real Estate

Here’s the upside: Big players like life insurance funds and institutional investors are eyeing real estate again. They’re betting that today’s prices are the bottom and positioning themselves for a rebound in 2025. For multifamily owners and buyers, this is a signal that demand is stabilizing, with healthy absorption rates for new supply across the board.

The consensus in the room? Multifamily and retail are still the MVPs of real estate. Institutional appetite might be cooling off elsewhere, but these asset classes are holding strong and offering the best opportunities right now.

But here’s what’s keeping folks up at night:

• Tariffs: Construction costs are climbing fast, which could squeeze your budgets on renovations and new projects.

• Labor shortages: Deportations are shrinking the low-cost labor pool, driving up expenses and extending timelines.

• CRE lending : Regional banks are under pressure to hold more capital, which means it’s getting tougher to secure financing, and the financing you do secure is lower leverage.