REAL ESTATE
Is the real estate demand cycle broken? Uncertainty is the new norm for property professionals.
Industry professionals say shifting trade policies in recent months have largely thrown the optimistic expectation out the window. Real estate owners, brokers, analysts and academics from across the country, from a prolific New York agent to a ranch investor in Dallas, are describing their own struggles wading through the current uncertain economic climate. Whether it’s a sense of malaise or confusion, professionals interviewed agree the sector emerging from the fallout of the pandemic is experiencing a shock from shifting U.S. tariffs on various countries and resulting nervous financial markets as clients tell brokerages they are waiting until they have more certainty.
https://www.costar.com/article/109196659/is-the-real-estate-demand-cycle-broken-uncertainty-is-the-new-norm-for-property-professionals
World’s biggest industrial real estate firms suffer from ‘economic sausage-making’
Warehouse owners including Prologis, First Industrial Realty Trust and Rexford Industrial, and global real estate brokerage Colliers, said tenants began delaying decisions on new leases after what had been a strong start in the first few weeks of the year. President Donald Trump’s initial announcement of sweeping tariffs on April 2 led to large swings in financial markets and contributed to a sharp decline in deal activity as landlords and their customers try to assess how the policies would affect operations. Even as some of those levies were later paused, the uncertainty is still causing potential buyers and renters of industrial real estate to tell their brokers they are holding off.
https://www.costar.com/article/2077504520/worlds-biggest-industrial-real-estate-firms-suffer-from-economic-sausage-making
In Seattle, a group of friends wanted to live together—so they built their own apartment building
“We realized very early that if you’re going to ask people who could otherwise be purchasing their own piece of property to live in an environment like this, then you also need to provide a way for them to be an investor, because oftentimes that’s a significant component of their retirement income or of their nest egg,” Dale says. “So we came up with the solution to allow folks to be investors as well as tenants.” They calculated that the return from the investment could potentially be similar to the return from owning and selling a single-family home. Three outside investors also joined the project without planning to live on-site.
https://www.fastcompany.com/91334548/in-seattle-a-group-of-friends-wanted-to-live-together-so-they-built-their-own-apartment-building
Colorado construction defects reform bill seen as key to affordable housing
Buyers of properties built under the program would receive a one-year workmanship and materials warranty, a two-year plumbing and electrical warranty and a six-year major structural components warranty. Participating builders must undergo third-party inspections during construction to address issues before obtaining a certificate of occupancy. The bill also increases the threshold for homeowners associations suing developers over defects, requiring at least 65 percent of unit owners to approve, up from a simple majority.
https://therealdeal.com/national/denver/2025/05/09/construction-defects-reform-bill-aid-to-affordable-housing/
Office to Anything: More Cities Offer Conversion Incentives
Although cities increasingly recognize the value of a more diverse adaptive reuse strategy, office-to-residential conversions remain the most popular, as the country continues to grapple with housing shortages. A record-breaking 70,700 apartments are set to come from converted offices in 2025, a significant increase from the 23,100 that were in the pipeline in 2022.
https://urbanland.uli.org/issues-trends/cities-launch-office-to-anything-conversion-incentives
The Spring Home Sales Season Is Shaping Up to Be a Dud
Sales rose in February, but activity the next month suffered its slowest sales pace for any March since 2009. Then in early April, President Trump rolled out his tariff policy, causing fresh economic anxiety and the stock market to sell off. That gave buyers another reason to stay away. “It really pulled back the market,” said Rick Palacios Jr., director of research at John Burns Research & Consulting. Prices fell year-over-year in April in 19 of the 100 biggest U.S. metro areas, the highest proportion since mid-2023, according to Intercontinental Exchange, a financial technology and data company. Home prices are still rising in the Northeast and Midwest, where inventory remains constricted. But prices are flat or falling across the once-booming Southeast and Southwest regions, especially in Texas and Florida. Homes are taking longer to sell, so inventory is piling up.
https://www.wsj.com/economy/housing/spring-2025-housing-market-sales-90f41fb3
RE Colorado – April 2025 Housing Market Trends
The local housing market showed steady momentum in April. A 3% year-over-year increase in closed listings signals ongoing buyer demand and a continued willingness among sellers to transact. The highest number of closed transactions occurred in the $500,000–$600,000 range. The median closed price held steady at $604,000, up just 1% from April 2024. This price stability suggests we are still seeing a balanced market. Homes spent a median of 14 days in the MLS, five days longer than in April 2024. While this reflects a slightly slower pace overall, it’s still indicative of a relatively brisk market. A notable 18% increase in new listings compared to last year gives buyers more options. At the same time, a 5% increase in pending contracts year-over-year shows that buyers remain active and ready to make offers.
https://recolorado.com/april-2025-housing-market-trends/
Amazon To Spend $4B Tripling Facilities In Smaller U.S. Towns
“[Amazon will] build out our same-day delivery sites and add additional robotics and automation throughout our buildings,” Amazon CEO Andy Jassy said during the company’s Thursday earnings call. “You’ll also see us expand the number of delivery stations that we have in rural areas of the U.S. So, we can get items to people who live in less densely populated areas much more quickly.” The $4B investment is expected to be disbursed through 2026, the company said.
https://www.bisnow.com/national/news/investment/amazon-to-spend-4b-opening-facilities-in-smaller-us-towns-129211
Denver CRE Leaders Welcome City’s Efforts To Speed Permitting
Johnston’s first executive order since taking office in April 2024 establishes the Denver Permitting Office, tasked with streamlining coordination across departments and getting major permits approved in six months or less. The order includes accountability measures such as fee refunds and project reviews by an executive committee if the city misses deadlines — a significant shift from past practices, according to panelists.
https://www.bisnow.com/denver/news/construction-development/denver-permitting-office-reactions-cre-developers-129219
Office-leasing momentum faces headwinds with tariffs and economic uncertainty
The VTS Office Demand Index, or VODI — which tracks early stage office-leasing demand and interest — softened in the first quarter of this year, according to the real estate technology company. Although the index technically increased by 4.6% from a year earlier, January and February saw declines that ended a 20-month streak of year-over-year growth, according to VTS.
https://www.bizjournals.com/denver/news/2025/04/30/office-leasing-tariff-turmoil-uncertainty.html
AFFORDABLE HOUSING
Believe it or not, there was a time when the US government built beautiful homes for working-class Americans to deal with a housing crisis
This approach reflected a belief by the policymakers that property ownership could strengthen community responsibility and social stability. During the war, the federal government rented these homes to workers at regulated rates designed to be fair, while covering maintenance costs. After the war, the government began selling the homes – often to the tenants living in them – through affordable installment plans that provided a practical path to ownership.
https://theconversation.com/believe-it-or-not-there-was-a-time-when-the-us-government-built-beautiful-homes-for-working-class-americans-to-deal-with-a-housing-crisis-253512
How a New Vision for Flexible Co-Living Conversions Can Support Housing Affordability
Utilizing the plumbing from kitchens and restrooms that are typical in office buildings, rather than adding new elements to individual units, reduced construction costs by 25% to 35% compared to conventional office-to-residential conversions on a cost per sq. ft. basis. The units offer private, secured dwelling rooms and large windows for every resident and can accommodate space for three times as many apartments as a traditional residential building. We also found a sizable potential market for this concept. In each of the cities studied, anywhere from 38% to 58% of all renters are single-occupant households, and the concept can deliver units that are significantly more affordable than the average market-rate studio in each city’s downtown.
https://www.gensler.com/blog/pew-study-flexible-office-to-co-living-conversions
Colorado’s First Annual State of Homelessness Report 2024
This inaugural report provides meaningful insight into the current state of homelessness in Colorado, including who is experiencing homelessness, how communities are responding, and the solutions needed to end it. By bringing together multiple data sources and perspectives, it lays the groundwork for deeper collaboration, greater efficiency, and a united approach to homelessness data reporting across Colorado.
https://www.cohmis.org/soh2024?utm_medium=email&utm_source=govdelivery
A new era of single-stair apartment buildings is coming to Denver and other Colorado cities
Under House Bill 1273, cities with more than 100,000 residents must revise their building codes by Dec. 1, 2027, to allow for a single stairway exit in apartment buildings of up to five stories, with a maximum of four units to a floor. The law applies to Denver, Colorado Springs, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Westminster, Greeley, Pueblo, Boulder and Centennial. Democratic Rep. Andrew Boesenecker of Fort Collins, is one of the bill’s main sponsors. He said when developers put up a large building with two stairways and a long hallway, they generally have to assemble many parcels of land into a single project, “which increases land acquisition costs by as much as 40 percent and also increases project durations.” Boesnecker said the new law will reduce construction costs and pave the way for more construction of two-, three- and four-bedroom units in smaller buildings. It may also make it easier for smaller developers to put up new projects, adding to the housing supply. Backers worked closely this year with the fire prevention specialists to address safety concerns, according to Boesnecker.
https://denverite.com/2025/05/13/denver-colorado-single-stair-apartment-law-passed/
Denver rents are dropping for first time in 15 years. What does that actually mean for renters?
The median apartment in the Denver metro is renting for $1,733, a reduction of $65 a month from the same time last year. That’s a drop of about 3.6 percent. It’s is the first year since at least 2006 that rents have fallen compared to the year before — a turn in the market, even if it’s a relatively small reduction.
https://denverite.com/2025/05/12/denver-renters-market/
Denver’s Incubation of Affordable Housing Innovation
The city’s housing crisis isn’t unique, but the city’s response to it is. As developer George Thorn, president and founder of Mile High Development, notes, “We certainly have a shortage of housing that’s affordable at all income levels, like every other community in the country, but I think we’re addressing it in a really effective and responsible way.” Thorn finds encouragement in the partnership between the city and the private sector. He explains that he can make affordable housing developments pencil in Denver, which would not be viable in other cities. “It takes a village,” he says, adding that it is impossible to develop affordable housing in a vacuum. Denver’s village is mobilized and motivated.
https://urbanland.uli.org/development-and-construction/denvers-incubation-of-affordable-housing-innovation
Governor Polis Signs Modular Housing Bill
Sponsored by Senator Jeff Bridges, Senator Tony Exum, Representative Andrew Boesenecker and Representative Rebekah Stewart, the new legislation aims to streamline the approval and construction process for factory-built residential and nonresidential structures, including modular and tiny homes. Once the Colorado State Housing Board adopts related rules, oversight by the state plumbing board, electrical board and fire suppression administrator will no longer apply to these types of structures, removing costly and time-consuming regulatory redundancies.
https://milehighcre.com/governor-polis-signs-modular-housing-bill/
Colorado giving nearly $48 million to local governments, groups to help with affordable housing
Colorado voters narrowly approved Proposition 123 during the 2022 election. The measure allows the state to dedicate $300 million a year of existing state revenues to affordable housing. The first land banking awards were awarded in 2024. Sixteen recipients from across the state were awarded over $25 million.
https://www.cpr.org/2025/05/09/prop-123-48-million-affordable-housing/
Would the Housing Crisis Ease if Boomers Rented Out Their Empty Rooms?
Over the past decade, cities and states around the country have tried to encourage ideas like Mr. Anderson’s by making it easier to add rental units to existing structures. Some have passed laws that allow backyard homes and garage and basement units. Others encourage homeowners to subdivide their lots and sell a portion for development. The goal is to add housing in existing neighborhoods without creating too much disruption — or stirring up residents who don’t like change. In many cases, the efforts have yielded more significant results than attempts to rezone entire cities or add apartment buildings to streets of single-family houses.
https://www.nytimes.com/2025/05/04/business/economy/housing-crisis-multifamily-adu.html
REAL ESTATE AND MOBILITY
Colorado inks deal with Union Pacific to expand mountain rail service from Denver
Colorado Gov. Jared Polis on Monday unveiled a public-private partnership between the state government and Union Pacific that will expand services on the rail line, ensure state access to the Burnham Yard property south of downtown and leasing the Moffat Tunnel to Union Pacific for 25 more years. The deal ensures 25 years of freight train access through the Moffat Tunnel — a 6.2-mile-long, high-altitude tunnel that crosses the Continental Divide outside Rollinsville and connects to Winter Park. The new lease replaces a 99-year-old one with Union Pacific, which expired May 1.
https://www.bizjournals.com/denver/news/2025/05/06/mountain-passenger-rail-union-pacific-moffat-tunne.html
How the private self-driving car might change how we live
I have been writing about AVs since 2011, when I spent the weekend at the Institute without Boundaries, now the Brookfield Sustainability Institute, discussing the role of the car in 2040. We concluded that the car would be electric, it wouldn’t look like a car today, and it would be a mobile extension of our homes, (shown here in movie and martini modes). Where many AV visionaries thought they would be shared, since our cars are parked 96% of the time, I came to believe they will be very, very personal- like our living room or bedroom. In fact, I thought they might well become our living room or bedroom.
https://lloydalter.substack.com/p/how-the-private-self-driving-car
Why Now Is the Time for a Workplace Reset
More than two-thirds (68%) of respondents say that working in the office positively impacts their connection to a shared mission or purpose, a key reason to work together. We identified seven ways of working with others while in the office, which activities are viewed as most important by industry, and the most ideal space(s) for each work activity. Despite its current challenges, employees, on average, still say they ideally need to be in the office to maximize their individual and team productivity more than they currently do. One thing is clear: the office remains relevant, and the opportunity lies in making it better.
https://www.gensler.com/blog/why-now-is-the-time-for-a-workplace-reset
Denver airport seeks $150M contract for new consolidated rental car facility
Starling said no official decisions have been made about how to use the 160 acres that will be freed up by relocating the rental car lots along 78th Avenue. But he said the airport is exploring “revenue generating development” such as additional parking, office space or another hotel as potential options.
https://www.bizjournals.com/denver/news/2025/04/29/denver-airport-rental-cars-contract-city-council.html
Paris is becoming a car-free city, with 500 streets closed to traffic
The decision stems from a consultative referendum held on March 23, in which 66% of voters supported the project promoted by Mayor Anne Hidalgo. Despite a low turnout — only 4% of eligible voters participated — the mayor announced the immediate launch of feasibility studies, marking yet another step in the city’s ecological transition. The plan involves interventions in each of Paris’s 20 arrondissements, with 6 to 8 streets closed per district and an estimated 10,000 parking spots to be removed. These will be replaced by new public green areas, bike lanes, and pedestrian zones. The works are expected to take three to four years, with an investment of about €500,000 per street.
https://www.domusweb.it/en/sustainable-cities/2025/04/23/paris-accelerates-toward-a-car-free-metropolis.html
MOBILITY
The Future of Commuter Rail in North America
Commuter rail services operate in more than 20 North American regions, connecting communities to urban downtowns. These services enjoyed decades of growth, with ridership increasing by 50 percent between 1990 and 2019. However, travel demand shifts brought on by the COVID-19 pandemic and continued work-from-home patterns caused ridership to collapse and only partially recover. This sudden change also upended the traditional financial model, in which fare revenues covered more than half of operating costs. While commuter rail providers vary in size and structure, they all share an uncertain future in solidifying a long-term and financially sustainable role in serving regional transportation demands.
https://nap.nationalacademies.org/catalog/29128/the-future-of-commuter-rail-in-north-america
Governor Signs Washington’s First-in-the-Nation Shared Streets Law
A shared street, as defined by SB 5595, has a speed limit of 10 miles per hour and allows pedestrians to walk in the center of the street. Jaywalking laws — an early project of the auto industry — no longer apply. Cars are allowed but pedestrians have the right of way. Rather than requiring pedestrians to conform to a highly ritualized process of walking along and crossing the street at specified times and locations so as to privilege cars, SB 5595 exempts pedestrians from this process and gives them true priority. The law establishes a clear hierarchy where bicycles must yield to pedestrians, and cars must yield to bicycles. Shared streets may be new in the United States but they are common across Europe, where they go by various names such as “woonerf” or “home zone.”
https://www.theurbanist.org/2025/05/19/governor-signs-washingtons-first-in-the-nation-shared-streets-law/
Public transit ridership hits post-pandemic high: APTA report
With the onset of the COVID-19 pandemic in early 2020, transit ridership in the U.S. plunged 40% as lockdowns and remote office work took hold. Recovery has been steady in recent years, returning to 66% by the end of 2022, 76% in December 2023, and ridership in 2024 at 79% of pre-pandemic levels. “Ridership continues to rebound despite limited office attendance, proving public transportation serves far more than traditional commuters,” said APTA President and CEO Paul Skoutelas in a statement.
https://www.smartcitiesdive.com/news/public-transit-ridership-post-pandemic-high-apta/748486/
Colorado officials plan Denver-Fort Collins rail service by 2029
The service would initially run three times a day between Denver and Fort Collins, with potential stops in Westminster, Broomfield, Louisville, Boulder, Longmont and Loveland. The total price tag, including operating costs and debt payments for projected capital expenditures, is estimated at $83 million a year beginning in 2029, and about half that total would be covered by dedicated revenue from the state’s new fees on rental cars and oil and gas production. RTD sales tax revenue could cover the other half, state officials said.
https://coloradonewsline.com/2025/05/19/colorado-denver-fort-collins-rail-2029/
It’s been decades since Colorado had inter-city train service. That’s about to change
These won’t be the high-speed bullet trains that dart across Europe and Asia. Colorado is committing to a fundamentally different approach: re-purposing 2,545 miles of existing track on century-old routes that crisscross the state and sharing them with freight trains. The speeds of Colorado’s new passenger trains won’t exceed 70 miles per hour. The first trains will be hard-pressed to hit 50 mph as they climb at elevations up to 9,239 feet above sea level. But this approach has forward momentum at a time when the U.S. government isn’t prepared to invest the billions of dollars required to keep pace with Asia and Europe.
https://www.denverpost.com/2025/05/11/colorado-passenger-trains-rail-denver-granby/
DOT could halt highway funding to New York May 28
An April 21 letter to New York Gov. Kathy Hochul from Transportation Secretary Sean Duffy warned the state “risks serious consequences” if it fails to comply with the Trump administration’s Feb. 19 revocation of the Federal Highway Administration’s prior approval of the tolling program. In a statement to news media in April, a spokesperson for Hochul said, “The program is working. Traffic is down, business is up and the cameras are staying on.”
https://www.smartcitiesdive.com/news/congestion-pricing-ny-highway-funds-at-risk-usdot/748687/
