CBRE has arranged a $17.35 million construction loan on behalf of Constellation Real Estate Partners and their partner, a large insurance company, for the development of a 240,041-square-foot speculative industrial facility in Pasadena, Texas, a key submarket within the Greater Houston area.

The CBRE Capital Markets’ Debt & Structured Finance team of Brian Linnihan, Mike Ryan, Richard Henry, and Taylor Crowder sourced the financing from Texas Capital Bank. The non-recourse construction loan will fund the development of Constellation Genoa Red Bluff, located at 2543 Genoa Red Bluff Road.

Strategically positioned in Houston’s Southeast submarket, an area characterized by limited land availability, the project is poised to meet growing demand for Class A industrial space in one of the metro’s most supply-constrained corridors.

The project will feature modern industrial specifications tailored to logistics and distribution users, including high clear heights, ample dock-high loading, and trailer parking. Construction is expected to begin in Q3 of 2025 and is scheduled to deliver in 2026.

CORFAC International’s first-half 2025 survey of members from 75 independent commercial real estate firms points to an upward trajectory for deals. When looking at the past six months, 67% of respondents said that deal activity had increased, compared to 35% of respondents in the last survey of 2024.

Industrial real estate continues to be the growth factor of CORFAC members’ business. Nearly 70% of respondents said it was a leading driver of business so far in 2025, and 56% said they expected it to be the leading sector in the second half of the year. In addition, 72% identified warehouse and distribution centers, continuing the trend from 2024 of those categories leading the way.

Members from 40 markets around the world identified positive employment trends (55%), population migration into their market (48%), and stabilizing interest rates (38%) as the three key factors that are having a positive influence on transaction activity. Members are noticing a strengthening of the office market after the post-pandemic slump. Two CORFAC deal highlights included the headquarters for Safelite AutoGlass – the largest office deal in the Columbus market—and a $24M class A office sale in Troy, Michigan.

Economic Uncertainty, Tariffs Dampen Positivity

The good news was tempered by some economic realities that are worrying members, including high costs of construction (66%), inflation and interest rates (60%), and local and national policies (40%). Multiple members mentioned the impact of tariffs causing volatility in the market. Some CORFAC respondents also mentioned lending challenges and the length of time to get deals done as headwinds.

“We’re pleased to see the strong uptick in deal activity in the first half of the year, but we also recognize the economic volatility that’s going to require a steadying force to keep that heading upward,” said Daniel Shindleman, CCIM, MRICS, of Bridgemer AG/CORFAC International and 2025 CORFAC President. “Collaboration and cross-market referrals have been the cornerstone of CORFAC’s mission since our founding and will continue to be our focus looking forward.”

To help their clients withstand market turbulence, while timing things right when deal opportunities arise, CORFAC member firms can provide trusted counsel. Their localized market intelligence is backed by global network that can put macroeconomic factors into context.

Sansone Group announced a new build-to-suit industrial project for Palmer Logistics in Midlothian, Texas, part of the Dallas MSA.

The facility will span 269,700 square feet on 26.5 acres and will be fully leased to Palmer for hazardous material storage and distribution. Construction will begin the first week of August 2025.

Palmer plans to take occupancy in July of 2026.

This is Sansone’s first transaction with Palmer Logistics.

Northmarq’s Chicago Debt + Equity team, led by Kevin McCarthy, Jeff Frankel and Alex Czachor, secured a $129.7 million refinancing for The Victor, a 344-unit luxury high-rise in the Victory Park neighborhood of Dallas, Texas.

The permanent, fixed-rate loan was arranged through Northmarq’s Fannie Mae DUS platform on behalf of the joint venture between Houston based – Hines and Chicago based – Diversified Real Estate Capital.

Completed in 2022, The Victor is a premier multifamily tower featuring top-of-market unit finishes and hospitality-inspired amenities, situated in a dynamic, rapidly transforming entertainment and employment district. The fixed-rate loan carries full-term interest-only payments, underwritten on a 35-year amortization schedule.

The U.S. multifamily market continued its strong recovery in the second quarter, as robust absorption reduced the national vacancy rate, according to CBRE’s latest research.

Positive net absorption, which measures the change in the number of occupied units, totaled 188,200 units in Q2 2025, the strongest second-quarter performance on record. This marks the fifth consecutive quarter in which demand surpassed construction completions. As a result, the overall multifamily vacancy rate fell by 70 basis points to 4.1%, well below its long-term average of 5.0%.

After a record 450,000 new units in 2024, only 83,000 units were delivered in Q2 2025, with a more pronounced slowdown expected in coming quarters.

“Multifamily fundamentals strengthened dramatically in the second quarter, as robust renter demand continues to outpace new deliveries. We expect the gains to continue this year and accelerate in 2026,” said Kelli Carhart, Head of Multifamily Capital Markets for CBRE. 

Average monthly rent increased 1.2% year-over-year in Q2 2025 to $2,228, the first time in two years that rent growth exceeded 1%. Rent growth is likely to further improve amid slowing construction completions and healthy absorption.

Multifamily investment volume rose 7.1% year-over-year in Q2 2025 to $32.9 billion. The multifamily sector accounted for the largest share of total commercial real estate investment volume in Q2 2025 (34%).

Other Q2 2025 Multifamily Sector Highlights: 

•    The Midwest (3.7%), Northeast (3.1%) and Pacific (1%) regions experienced solid year-over-year rent growth. 

•    All 69 markets tracked by CBRE recorded positive net absorption in Q2 2025, with New York (19,300 units), Chicago (9,300) and Dallas (8,700) leading the way.

•    Sixty-eight markets saw net absorption exceed new supply in Q2 2025, up from 52 markets in Q1 2025 and 65 in Q4 2024.

•    Vacancy rates declined in 68 markets quarter-over-quarter in Q2 2025, up from 52 markets in Q1 2025.