Inflation Fails to Shake Equity Markets, Focus on Rate Cuts while CRE Holds Firm

For the week ending August 15, The CRE Weekly Digest team digs into a tale of two markets. Hot wholesale inflation data dampened hopes for a jumbo September rate cut, but investors are still more focused on the prospect of cheaper money than the persistence of higher prices. Manus Clancy warns that U.S. equities are looking dangerously complacent – with historically high P/E ratios, low volatility, and frothy valuations – but sees a steadier hand in commercial real estate. LightBox transaction data shows $160B in 2025 deals to date, with July posting a 10% jump in deals over $50M, and a broad, sober buyer pool keeping valuations grounded. Dianne Crocker spotlights that 54% of office deals are trading at a discount, while multifamily remains the most in-demand listing type. The team also covers steep Pasadena office price cuts, San Francisco hotel distress, and the flow of plentiful (often private equity) capital into even riskier CRE projects. Plus: Disney-branded housing, relocation cash incentives from unexpected cities, and why insurance costs could be CRE’s biggest near-term headwind.

00:18 Market Complacency and Inflation Concerns 

01:57 Frothy Equities vs. Steady CRE Markets 

03:47 CRE Market Activity and Measured Optimism 

09:08 LightBox Data Dive: July Transactions 

17:46 Noteworthy Transactions and Market Trends 

29:19 Upcoming Webinar and Disney “Storyliving” 

Have questions for the pod team? Send them to Podcast@LightBoxRE.com. 

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