The producer price index was up 0.2% last month, less than in November and below the Dow Jones consensus estimate of 0.4%, the Bureau of Labor Statistics said. A core measure that strips out the food and energy categories increased 0.1%.

President Joe Biden signed an executive order directing the departments of Defense and Energy to identify appropriate federal sites for AI data center development. Developers chosen to build on the sites will be asked to pay for construction costs and bring sufficient clean power generation. AI technology has "profound implications for national security and enormous potential to improve Americans' lives if harnessed responsibly," Biden said in a statement.

The application process is now open for Washington, D.C.'s "Office to Anything" program, designed to revitalize outdated office properties. Developers can benefit from a 15-year property tax freeze as they convert buildings to entertainment, retail and other uses. A separate incentive program is in place to support office-to-apartment conversions.

Boston Mayor Michelle Wu has proposed new legislation to rebalance property tax liabilities in the city. The plan aims to raise the cap on commercial property tax increases for a three-year period in order to mitigate residential property tax burdens. The proposal comes after a previous attempt failed to make it through the state's legislature.

Inflation expectations were mixed in December, with consumers' one- and three-year expectations at 3%, according to the New York Federal Reserve. However, five-year expectations dropped to 2.7%. More households offered a positive assessment of their own finances, but they anticipate more modest future gains in earnings and income.

Certain risks remain, but "there is a real possibility for an environment with both moderating interest rates and robust economic growth, otherwise known as an economic soft landing," Nareit's John Worth wrote in an outlook for 2025. Meanwhile, Leo Nelissen of Hoya Capital Real Estate notes that "REITs remain financially robust with low leverage and strong access to capital."

Sher Hafeez, senior managing director of JLL's M&A and corporate advisory group, discussed how some REITs -- especially those in certain sectors -- have been trading at a premium to net asset value and have been using their position to shore up their capital for this year. "I'd expect REITs to be pretty active acquirers compared to the last couple of years," Hafeez said.

Investor Bill Ackman's Pershing Square is looking to establish a new entity to merge with Howard Hughes Holdings. Howard Hughes said it had received Ackman's proposal and that a special committee of independent directors would review it. Under the proposed transaction, Howard Hughes would maintain its current management and employees, according to Ackman.

KnitWell Group has renewed and expanded its space at BXP's 7 Times Square in Manhattan, taking a total of 246,000 square feet. The 20-year lease gives KnitWell space on two additional stories in the building. "7 Times Square offers unmatched convenience and opportunity at the center of New York City's busiest transportation and entertainment hub," said BXP's Hilary Spann.

Trader Interactive has signed a 12,000-square-foot lease at Virginia Beach, Va.'s Armada Hoffler Tower, where it will occupy the top floor. The 362,500-square-foot tower, owned by Armada Hoffler, also has 38,500 square feet of street-level retail.