A joint venture between Remedy Medical Properties and Kayne Anderson is in a $7.2 billion deal to acquire a 296-asset portfolio of outpatient medical facilities from Welltower. After the transaction, Welltower will continue to have a preferred equity position in the portfolio. Separately, Welltower CEO Shankh Mitra recently discussed the REIT's UK expansion through the acquisition of a Barchester Healthcare portfolio for around $6.92 billion. "Our years of conversation and close familiarity with the Barchester assets and management was certainly helpful," Mitra said.

Markets are expecting the Federal Reserve to lower its benchmark interest rate by a quarter percentage point, moving it to the 3.75% to 4% range at the conclusion of its meeting today. Concern about the future of the labor market could encourage the central bank to cut further at subsequent meetings, although the situation is complicated by a lack of economic data as a result of the government shutdown.

US and South Korea pointed to a breakthrough on trade, with a South Korean presidential aide indicating that the countries would lower reciprocal tariffs to 15%. In addition, South Korea will invest $150 billion in shipbuilding and earmark an additional $200 billion as part of an investment pledge.

President Donald Trump and China's Xi Jinping are set to meet in South Korea, days after top trade negotiators from the US and China arrived at a framework agreement. A potential deal between the countries is expected to see the US lower tariffs related to the fentanyl crisis and China to delay restrictions on the export of rare earth metals.

A stronger earnings outlook for AI companies is pointing to continued momentum in the sector. In addition, President Donald Trump said he would discuss Nvidia's Blackwell chip with his counterpart Xi Jinping. "There is positive news everywhere," said Vey-Sern Ling of Union Bancaire Privee.

The average rate on a 30-year fixed mortgage declined to 6.3% last week, and total application volume increased 7.1%, according to the Mortgage Bankers Association. Mortgage rates were at the lowest point since September 2024.

Kilroy Realty has reported record third-quarter leasing activity, driven in part by the rebounding San Francisco real estate market. The company signed 552,000 square feet of leases, including 315,000 square feet of renewals. Meanwhile, 970,000 square feet of leases are headed for expiration. "The path forward will require a greater emphasis on new leasing activity," said CEO Angela Aman.

AI is increasingly being used in commercial real estate, with companies such as Prologis, Inc., Amazon and Walmart leading the way, according to a report published by the NAIOP Research Foundation. AI is expected to boost efficiency in warehouse operations and aid processes such as site selection. The report also cites the development of off-the-shelf products, helping make the technology accessible.

Blackstone CEO Jon Gray said recently that investor sentiment in real estate is improving and noted that "flows ultimately follow performance." Gray said that commercial property values have been strengthening since December 2023, and he pointed to improvements in the cost and availability of capital. Gray also touched on the strength of BREIT's portfolio. "BREIT's exposure to data centers, now almost 20%, continues to be extremely helpful in driving its results," he said.

There is a housing deficit of around 7.1 million homes in the US, with the most severe shortages in places such as Colorado, Texas and Florida, according to Chandan Economics. Multifamily permitting has declined to pre-pandemic levels in 2025, and metros in the West, Northeast and Great Lakes regions have had difficulty keeping up with demand.