Many US cities are eliminating or reducing minimum parking requirements, aiming to encourage housing development and create more walkable urban environments. Evidence suggests that this shift has led to increased housing construction in some areas. Observers note that parking requirements add costs and don't always align with market demand, although some residents have raised concerns about parking shortages and traffic congestion.

REITs successfully navigated 2024, managing elevated interest rates while "maintaining enviable balance sheets and access to capital markets," writes Nareit's John Worth. Looking ahead, there is the potential for a soft landing this year despite certain risks, Worth notes. Meanwhile, REITs could seize opportunities to lead globally, make inroads with institutional investors and pursue accretive growth.

FDIC Vice Chair Travis Hill has outlined his vision for a lighter regulatory approach, focusing on reducing compliance burdens, reconsidering Basel III capital rules, and fostering innovation in fintech and digital assets. Hill also was critical of climate-focused financial policies, and advocated for clear, timely guidelines for emerging technologies. Hill will serve as acting head of the agency after the retirement of Chairman Martin Gruenberg later this month.

US inflation likely cooled slightly at the end of 2024, with core consumer prices rising 0.2% in December, according to projections from a Bloomberg survey. That reading, along with recent strength in the labor market, could encourage the Federal Reserve to take a patient approach to further rate cuts.

The US CMBS delinquency rate increased to 2.98% at the end of 2024, according to Fitch Ratings. New 60-plus day delinquency volume rose to $2.08 billion last month, with office loans accounting for the largest share, and resolution volume declined to $586 million. Meanwhile, Trepp reports that the CMBS special servicing rate has reached 9.89%.

Bonds have become a focal point on Wall Street as yields on 10-year and 30-year Treasurys have climbed recently. The upward trend in government bonds is being felt in weaker economies around the globe, but some observers still see bonds as a relative safe haven amid widespread uncertainty.

The office property sector is showing evidence of recovery, with a clear distinction between high-quality prime spaces and other properties. During a recent earnings call, BXP Chairman and CEO Owen Thomas noted that top-quality buildings have asking rents that are 50% higher than the market as a whole. Separately, Cousins Properties President and CEO Colin Connolly said that "there was quite a bit of doom and gloom, which is beginning to subside as we start to see return to office activity in greater numbers." Empire State Realty Trust President Christina Chiu characterized the market as "a story of haves and have-nots."

Last year saw 667,000 total multifamily units absorbed, and multiple factors could spur continued momentum in 2025, even if the pace of absorption declines slightly, according to RealPage. Key demand drivers could include job growth, improved affordability and dynamics in the market for buying single-family homes.

Burlington is transforming its strategy by significantly reducing store sizes and expanding its product offerings. The company is looking to open 400 net new stores over the next four years in order to compete with larger off-price retailers. New stores are almost 70% smaller than the brand's big-box locations, measuring around 25,000 square feet.

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