Zoned Commercial

10/08/2025

Government Shutdown Sends Shockwaves Through Real Estate
When the federal government shuts down, most people think about stalled home loans — but the real tremors run deeper across commercial real estate.

A prolonged shutdown means:
🔹 Data blackout:
Key economic reports from the Bureau of Labor Statistics and Census Bureau — on jobs, construction, and permits — go dark, leaving investors and developers without visibility.
🔹 Financing friction:
Lenders tighten credit, risk premiums rise, and HUD-related financing queues stretch longer. As one private equity fund manager put it, “Political risk is now one of the hardest to underwrite.”
🔹 Consumer chill:
Retailers, coffee shops, and hospitality businesses in government-dependent markets face declining foot traffic and furlough-driven spending cuts.
🔹 Federal property freeze:
GSA leases, government contracts, and federal CRE transactions hit pause. REITs heavily tied to federal rent streams — like Easterly Government Properties and JBG Smith — face exposure risks.
🔹 Construction slowdown:
From EPA permits to DOT project approvals, the shutdown can freeze billions in infrastructure and construction activity — hitting subcontractors, suppliers, and local economies.

Bottom line:
A government shutdown doesn’t just stop policy — it stops progress. The ripple effect reaches every corner of the real estate ecosystem, from small businesses to billion-dollar funds.

Read full article : Link in comments

10/07/2025

🚀 OpenAI Doubles Down on Data Center Power!

OpenAI is investing tens of billions in AMD to supercharge its AI data center network, marking another massive move in the global “compute race.”

💡 The Deal:
• OpenAI will purchase 6 gigawatts of AMD chips—enough to fuel several next-gen AI data centers.
• The deal gives OpenAI the option to acquire up to 10% of AMD.
• The first 1 gigawatt of capacity goes live in late 2026.

⚙️ Why It Matters:
This comes just after Nvidia’s $100B investment in OpenAI—showing how tech giants are racing to secure real estate, land, and power to support AI growth at an unprecedented scale.

🏗️ Bigger Picture:
• OpenAI, Oracle & SoftBank’s $500B Stargate Project in Texas is already reshaping the data center landscape.
• Investors are pouring billions into “digital real estate”, with 95% planning to boost data center investments in 2025.
• Analysts warn of power grid bottlenecks and potential AI investment bubbles, but also see strong long-term demand.

🗣️ “The world needs much more compute,” said OpenAI CEO Sam Altman, calling the AMD partnership a “major step” toward unlocking AI’s full potential.

Full article in comment.

09/30/2025

Requirements for FIRPTA Payments Changing on September 30, 2025
Full details in first comment.

09/30/2025

The Fed is widely expected to cut the fed funds rate by a quarter of a percentage point to a range of 3.75% to 4%.
Details in first comment.

09/29/2025

Global real estate funds, managing $16.7B as of Q2 2025, are actively reshaping allocations. The trend is a clear move away from offices and Asia Pacific markets and toward retail, data centers, health care, and lodging/resorts.

⸻

Regional Allocation Shifts
• Americas (esp. U.S.): Up from 65% (2020) → 74% (2025).
• Asia Pacific: Down from 21% → 15%.
• EMEA: Stable at ~11%.

⸻

Sector Allocation Shifts
• Rising:
• Retail: 7% → 13%+
• Data Centers: +4 pts → 10%
• Health Care: 12%
• Lodging/Resorts, Self-Storage: Gains
• Declining:
• Office: 10% → 4% (sharpest drop)
• Residential: Down to 15%
• Industrial: Stable, but dipped to 11%

⸻

Active vs Index Positioning
• Overweights: Data centers (135% of index weight), lodging/resorts, self-storage, health care (>130%).
• Underweights: Diversified (65% of index share), telecom, office.
• Retail: Moved from underweight to parity.

⸻

Why It Matters
• Managers are pivoting toward resilient, growth-driven sectors (tech-linked, health-oriented, consumer recovery plays).
• Office continues its decline globally, mirroring U.S. trends.
• Global tilt: Lodging/resorts and self-storage see more favor abroad than in purely U.S.-based strategies.

⸻

Forward Look
• Expect continued divergence from traditional benchmarks as managers chase alpha in non-traditional and emerging real estate segments.
• Diversification by region and sector will be critical as global macroeconomic shifts play out.

⸻

👉 This signals a long-term structural rebalancing: tech-driven (data centers), consumer-linked (retail, resorts), and necessity-based (health care, storage) sectors are now the clear winners.

Read More on CRE Daily click here

Global funds are reallocating investments, favoring retail and data centers while reducing exposure to office and Asia Pacific markets.

09/29/2025

Travel Industry Outlook to 2034

• $16 Trillion Market: By 2034, global travel is expected to reach $16T, outpacing overall GDP growth. Market share of travel in the world economy will rise from 10% today to 11.5%.
• Top 5 Markets: U.S., U.K., Germany, China, and India currently represent 34% of global travel spend; projected to hit 42% by 2040.
• Drivers: Consumer prioritization of travel as a spending category, along with rising middle-class wealth globally.

AI’s Role in Travel
• Transformational Shift: AI seen as the biggest disruption in travel since the internet.
• Consumer Sentiment:
• 91% of global travelers are excited about AI.
• 80% are familiar with it.
• But trust remains low: only 6% fully trust AI and 12% are comfortable with AI making decisions.
• Agentic AI: Expected rise of AI that acts without human input. Examples:
• Rebooking flights during disruptions.
• Adjusting itineraries automatically.
• Managing end-to-end travel logistics.
• Adoption Trends:
• 89% of consumers want to use AI in travel planning.
• 24% trust AI assistants—outpacing travel bloggers (19%) and influencers (14%).

Implications for Businesses
• Operational Readiness: Travel and hospitality companies need to strengthen AI-driven back-end systems. Options:
• Hire specialized AI firms.
• Develop in-house AI optimization.
• Marketing Channels: Social media remains a key driver of traveler behavior—maintaining strong presence on major platforms is non-negotiable.

Key Takeaway: Travel is becoming the world’s leading discretionary spend, fueled by middle-class growth and tech adoption. AI—particularly autonomous AI agents—is set to redefine how travel is booked, managed, and experienced. Companies that optimize AI operations while keeping strong social media visibility will capture disproportionate market share in the coming decade.

Read More on CoStar

Booking.com data finds surge in AI use in trip planning

09/29/2025

Starbucks is shutting several hundred stores across the U.S. and Canada—many in high-profile urban locations—due to post-pandemic declines in downtown foot traffic, competition from drive-thru-focused rivals like Dutch Bros., and underperformance in sales. Closures include major markets such as Los Angeles, Seattle (including its Capitol Hill Reserve Roastery), Chicago, and parts of New Jersey. While reducing its fleet by ~1%, Starbucks is pivoting toward drive-thru expansion and more sustainable locations. CEO Brian Niccol aims to refocus on profitability and restore Starbucks’ coffeehouse appeal, with early signs of improved customer engagement.

Read more at CoStar

Drop in foot traffic, feisty drive-thru rivals have dinged Starbucks, analysts say

07/27/2025

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06/21/2025

Source : Co-Star

🛒 Kroger to Close 60 Stores Amid Strategic Shift Post-Merger Collapse

Kroger has announced it will close approximately 60 stores across the U.S. over the next 18 months, following the collapse of its $24.6 billion proposed merger with Albertsons. The closures, affecting "ones and twos by division" nationwide, are part of a long-deferred streamlining effort. The company took a $100 million impairment charge related to these shutdowns.

🔹 All affected employees will be offered roles at other nearby locations.
🔹 No specific store locations have been disclosed yet.

While trimming underperforming stores, Kroger plans to open more than 30 new stores in 2026, favoring high-growth regions and popular formats like its Marketplace stores. One such expansion includes a 123,000-square-foot King Soopers superstore in Aurora, Colorado.

The closure decision follows a federal judge's December ruling blocking the Kroger-Albertsons merger on antitrust grounds — a deal that would’ve united two of the nation’s largest grocery chains.

Kroger is currently led by Interim CEO Ron Sargent and is still searching for a permanent replacement for former CEO Rodney McMullen.

04/07/2025

Coming Soon in May 2025.

The Zoned Commercial Podcast is hosted by Roy Malkison, the founder and CEO of Malkison Company, an integrated business service company. With a focus on supporting small and medium-sized businesses, Malkison Company offers a range of services, including:

Services Offered by Malkison Company

-Lending: Providing financial solutions for businesses
-Realty: Assisting with commercial real estate needs
-Insurance: Offering insurance services for businesses
-Business: Providing general business support and guidance
-Media: Utilizing media platforms to promote businesses
-Technology: Leveraging technology to drive business growth

The Zoned Commercial Podcast

The podcast offers 52 episodes of actionable knowledge every year, making it a valuable resource for entrepreneurs and business owners. With Roy Malkison's expertise and experience, the podcast likely covers a range of topics relevant to small and medium-sized businesses, such as:

Potential Topics Covered on the Podcast

-Business growth strategies
-Financial management
-Marketing and advertising
-Industry trends and insights
-Entrepreneurial stories and interviews

By tuning into the Zoned Commercial Podcast, listeners can gain valuable insights and practical advice to help them navigate the challenges of running a small or medium-sized business.

https://www.youtube.com/playlist?list=PLhpd7Eda2UpGDNdiqp41eoQRDwpCffGTp