The office market bottomed last year, and now "there are lots of positive things that are going on for part, not all, of the office business," says BXP CEO Owen Thomas. He discusses bifurcation in the office market and notes that leading companies want their employees to be working in-person. Thomas also talks about the amenities that tenants want, including easy access to commuting.

A Nareit analysis of the largest actively managed real estate investment funds focusing on REIT investment found that the health care segment accounted for the largest share of allocations in the third quarter. However, "telecommunications remained the most overweight sector relative to its index weight, invested at 135% of its index share," writes Nareit's Nicole Funari. Meanwhile, office allocations have moved from underweight to overweight relative to their index weight.

Federal Reserve Vice Chair Philip Jefferson noted downside risks to the labor market while emphasizing the need to "proceed slowly" as the central bank adjusts interest-rate policy. Separately, Federal Reserve Governor Christopher Waller cited concerns about the job market and indicated support for another rate cut.

White House economic adviser Kevin Hassett noted that the job market is currently sending mixed signals and could be slowing. However, there have been "really, really positive signals in the output markets," he said.

US initial jobless claims reached 232,000 in the week ending Oct. 18, according to Labor Department data published through its online database during the government shutdown. Continuing claims edged up to 1.96 million as economists relied on state-level filings and seasonal factors to estimate labor-market conditions while major federal reports remain delayed.

US construction spending unexpectedly rose 0.2% in August, with home renovations likely being a key factor, according to the Commerce Department. Spending on private construction increased 0.3%, with residential construction up 0.8%. Spending on multifamily housing units gained 0.2%.

Some multifamily investors are shifting their focus from core and core-plus assets to value-add opportunities as they seek higher yields, says Andrew Leahy of IPA Multifamily. Leahy also notes that "asset prices have reset, and we are in the recovery portion of the cycle."