​🚦The Hard Corner 

Presented by Marhilus Ventures 

Happy Thursday!

We’re your go-to source for the latest news in the retail and finance sector of commercial real estate. Every other week, we’ll provide you with a concise and insightful roundup of the key stories shaping our markets.

This edition highlights key trends and strategies shaping the real estate and retail sectors. The commercial real estate market enters 2025 amidst a transition from low-interest-rate growth to a strategic, high-rate environment, but signs of recovery abound. Improving fundamentals, rate cuts by central banks, and global growth are driving optimism, bolstered by key trends like demographic shifts, AI innovation, and decarbonization efforts. Investment opportunities are emerging in areas such as rental housing, retail, industrial properties, and niche sectors like student housing and data centers. While challenges such as geopolitical risks, office market struggles, and refinancing uncertainties persist, disciplined strategies and asset-level execution position 2025 as a year of recovery and transformation for the industry.

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📉 Market Spotlight

*Data from 01/16/2025

 📰 Featured News

 🚦 The Hard Corner Picks

• Falling CRE Valuations and the Risks to Private Equity Real Estate: How Gated Withdrawals, Skewed Incentives, and Appraisal Discrepancies Are Undermining Transparency and Trust in the U.S. Market.

• CRE Market Outlook for 2025: Optimism Amid Challenges: Dynamic Growth in Housing, Industrial, and Data Centers Balances Persistent Office Struggles and Refinancing Uncertainty.

• Commercial Property Prices Rise in 2024, But Growth Slows Ahead: Green Street Reports 4.8% Annual Gain with Malls and Apartments Leading, Yet Macro Pressures Loom for 2025.

• Fed Minutes Signal Steady Rates Amid Inflation and Trade Concerns: Central Bank Navigates Shifting Economic Pressures as Global Markets Brace for 2025 Challenges.

• U.S. REITs Raise $72.5 Billion in 2024 Amid Decline in M&A Activity: Debt and Equity Offerings Drive Capital Raising as Mergers Slow to $12.9 Billion, Marking a Shift from Previous Years.

• Surging December Job Growth Dampens Fed Rate Cut Expectations: Unexpected 256,000 Payroll Gain Highlights Labor Market Resilience Amid Inflation Concerns and Monetary Policy Uncertainty.

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Property Types Managed

• Retail

• Industrial

• Office

Specializing in properties in California and Nevada, we manage single-tenant and multi-tenant spaces, from 2K SF to 75K SF, with various lease types including, NNN, NN, Modified Gross, and Gross Leases.

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🛒 The Retail Corridor

• The Retail Reckoning: How a Challenging Environment is Reshaping the Industry: From bankruptcies to declining malls, niche retailers and giants alike face mounting pressures in the post-pandemic era.

• Suburban Surge or Urban Revival? The Complex Dynamics of Retail Rent Growth: As remote work reshapes demand, prime urban districts and vibrant mixed-use areas outpace suburban counterparts in retail rent growth, driven by evolving consumer behavior and generational spending trends.

• Party City Lease Auction Set to Reshape Retail Landscape: Nearly 700 Locations Across 44 States Offer Turnkey Opportunities Amid Bankruptcy Wind-Down.

• Joann Reshapes Retail Footprint Amid Bankruptcy Recovery: Store Closures, New Openings, and Leadership Changes Define the Craft Retailer’s Path Forward.

• Macy’s Accelerates Store Closures While Expanding Luxury Brands: 65 Locations to Shut by Year-End as Focus Shifts to Bloomingdale’s and Bluemercury Growth Amid Financial Integrity Challenges.

• Pickleball Fever: The Sport Shaping Real Estate Development: From Social Hubs to Theme Parks, Developers Embrace the Fastest-Growing Sport in America.

• Joann Files for Bankruptcy Again Amid Retail Challenges: Iconic Fabric and Craft Retailer Enters Chapter 11 to Secure Buyer and Repay $450M Debt, Following Industry-Wide Financial Struggles.

Editor’s Note

We dedicate significant effort into crafting a newsletter that balances information with engagement, but let’s be honest – newsletters aren’t our day job. Marhilus Ventures is a diversified investment firm, involved in real estate, finance, and business investments. Our niche? Retail assets, hence “The Hard Corner.” Specializing in middle-market value-add properties, both single and multi-tenant, we strategically invest capital through direct equity, joint venture equity, and debt structures across the United States.

Go Check out our investment criteria, if you have anything that may be of interest, shoot it over. We appreciate it!