Rates spike, spreads diverge, and power infrastructure reshapes industrial

Cole Perry and Omar Eltorai work through the latest economic data that's reshaping commercial real estate: labor weakening in office sectors, construction capital concentrating almost entirely in data centers, and the 10-year treasury closing at 5.29% - the highest since 2002. Credit spreads tell an interesting story, diverging sharply between investment-grade and high-yield. The back half dives into Cole's research on power infrastructure and industrial pricing: whether proximity to power generation actually moves property values, how that premium has shifted since 2022, and what it signals about where industrial demand is headed.

Key moments:

02:00 Labor data

05:30 Consumer confidence falling, personal savings at record lows

11:50 Treasury yields spike to 5.29%

13:40 K-shape in credit spreads

18:50 CRE sorting market

20:30 Fundamentals remain strong

28:00 Power infrastructure research

Resources:

Cole Perry - https://www.linkedin.com/in/coleperry1/

Omar Eltorai - https://www.linkedin.com/in/omareltorai/