Today we should get some answers about what the Fannie Mae and Freddie Mac privatization process might look like.

Bill Pulte is headed to Capitol Hill for his confirmation hearing to lead the Federal Housing Finance Agency, and he’s already been warned that the GSEs are a big part of the agenda. 

Sen. Elizabeth Warren, the ranking member of the Senate Committee on Banking, Housing and Urban Affairs that Pulte is set to appear before, published a 23-page open letter Monday with dozens of questions about the end of conservatorship and more and told Pulte to come prepared with answers to them. 

A preview of what she wants to know: if there will be congressional approval, timing, capital requirements and the future of the government’s $445B in preferred stock agreements. 

The CRE industry wants to know if the guarantee that the federal government won’t allow a widespread default of mortgage-backed securities by Fannie and Freddie will survive the process. 

“Just because conservatorship ends doesn't mean that government control similarly ends,” said Michael Hanin, an attorney with Kasowitz Benson Torres who represented the government in lawsuits against banks after the stock market collapse in 2008.

The Trump administration is widely expected to introduce a replacement program to avoid disruptions in the mortgage-backed securities marketplace, perhaps by running a secondary market that insures the loans.

Here’s what we know about privatization so far: Bill Pulte Faces Big Questions On Capitol Hill Over Fannie Mae Privatization

— Mark F. Bonner, Catie Dixon, Jay Rickey and Kayla Carmicheal

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CRE News Quiz

The corporate home to Lumon Industries in Apple TV's hit series Severance is an actual place you can visit. Where is it? Bonus points if you can name its famous architect and what it's called now.

(Answer at the bottom.)

On Our Radar

• Treasury yields slip as tariff fears and weak economic data weigh on markets. The 10-year Treasury yield fell to 4.256% as concerns over President Donald Trump's escalating trade war and sluggish economic data drove investors toward bonds. New home sales dropped 10.5% in January, weakening consumer confidence. Today, U.S. jobless claims hit 242,000, the most since October, with D.C. surging 26% amid federal job cuts. Markets now await Friday’s PCE inflation report for clues on the Fed’s rate path. Meanwhile, CRE borrowers hoping for lower debt costs continue to face prolonged high rates, with analysts warning that only a severe recession would bring significant relief.

• Nightingale surrenders Miami Beach office amid fraud fallout. Elie Schwartz’s Nightingale Properties has relinquished the Lincoln Place office building in Miami Beach to Granite Point Mortgage Trust, avoiding foreclosure. The property was central to Schwartz’s $54M crowdfunding fraud, in which he misused investor funds for personal expenses. Schwartz pleaded guilty to wire fraud two weeks ago and faces up to 20 years in prison. The building, once home to Starwood Capital, has been vacant since 2022.

• AI is taking over building management. A Honeywell survey found 84% of CRE decision-makers plan to expand AI use for security, energy management and predictive maintenance. While 60% already use AI for maintenance, 92% report hiring challenges, highlighting AI’s role in upskilling workers. Top applications include behavior monitoring (63%), occupant tracking (52%), biometric access (45%), energy (50%), water (41%) and temperature control (40%). The survey polled 250 U.S. building managers overseeing AI-enabled properties with at least 250 occupants. As Bisnow reported this week, multifamily’s “AI-driven revolution” is well underway — but uneven.

• It's officially Girl Scout Cookie season, and we couldn't be more thrilled. Catie gave the Wendy’s Thin Mint Frosty a try this week. Turns out it’s just a regular frosty with a Thin Mint cookie sauce on the edges. Still tasty. As far as Mark is concerned, there is only one Girl Scout cookie worth eating: Samoas. 

On The Charts: Delinquency Rates

The U.S. delinquency rate across property types has been steadily rising for the last two years and now sits at 7.6%, whereas Canada’s rate has stayed low and is now 1.1%, according to Morningstar DBRS’ Canadian CMBS Monthly Statistics Report for January.

This Morning’s News

OFFICE — Trump Gives Agencies Deadline To Propose Moving Out Of D.C. Area (Bisnow): A memo sent to all executive departments and agencies Wednesday says they are to submit plans for relocation out of the national capitol region by April 14. The memo presents instructions and timelines for reporting progress on implementing the president’s “workforce optimization” executive order. Read more here.

CAPITAL MARKETS — 2025 CMBS Maturity Wave Hits $151B (Trepp): Nearly $64B in CMBS loans scheduled to mature in 2025 are "hard" maturities, meaning they must be refinanced or paid off by their maturity date. February and March combined account for over $27B in maturities. Read more here.

INVESTMENT — Witkoff: CRE Developers To Discuss Gaza (The National News): Real estate developer Steve Witkoff says there will be a summit for real estate developers to explore potential development projects in Gaza. Read more here.

HOUSING — Builders Testify Before Congress On Permitting Delays (Construction Dive): NAHB chairman Carl Harris said the Clean Water Act and Endangered Species Act are difficult to navigate. Harris also said the cumulative cost of regulations represents 24% of the final price of a new single-family home. Read more here.

FINANCE — Neuberger Berman Raises $1B For Real Estate Secondaries Fund (Bisnow): The New York-based firm raised $1B to invest in the growing secondaries market, surpassing its $800M target and 48% bigger than its prior fund. Read more here.

LIFE SCIENCES — Eli Lilly To Invest $27B Into 4 New Sites (Bisnow): The pharmaceutical giant’s plan brings its total capital commitment for future expansion to over $50B. The company is in talks with multiple states for the new builds and is taking proposals through March 12. Read more here.

RETAIL — TJX Plans Store Expansion (Glossy): The parent company of TJ Maxx and Marshalls, Sierra and Homesense intends to add 130 stores, bringing it to 5,200 locations by the end of the year. That’s a 3% increase in the U.S. Read more here.

DATA CENTERS — Atlanta Surpasses Northern Virginia As Top Market (Bisnow): Atlanta’s net absorption reached 705.8 megawatts in 2024, a 39-fold increase from 2023. Atlanta jumped from seventh to first in just six months, boosted by a 222% increase in inventory last year. Read more here.

PEOPLE — Cushman & Wakefield Leader Launches New Firm (Bisnow): After 10 years as a regional head for Cushman’s mid-Atlantic and Southeast region, Roberta Liss is leaving to start LNSS Advisors, a data center consultancy. Read more here.

INVESTMENT — Trump’s Plan To Kill EB-5 Stuns The Industry (TRD): The real estate sector was blindsided by Donald Trump’s push to eliminate the EB-5 investor visa program. Industry leaders warn the move could disrupt billions in development funding that has long relied on foreign investment. Read more here.

INVESTMENT — Lutnick Claims EB-5 Replacement Would Generate $1.25T (Fox Business): Secretary of Commerce Lutnick says there are about 250,000 people in line for "gold card" visas priced at $5M a piece, which would raise $1.25T for the U.S. Read more here.

INDUSTRIAL — U.S. Industrial Market Hits 60 Consecutive Quarters Of Growth (Newmark): Industrial vacancy could hover around a cyclical high of 6.9% this year, but an easing of supply-side pressures sets the stage for future improvement. Read more here.

M&A — AvalonBay Expands In Texas (AvalonBay): AvalonBay is acquiring six Dallas-Fort Worth properties for $432M and two Austin properties for $187M from BSR REIT. Read more here.

GOVERNMENT — IRS To Close More Than 110 Offices (WaPo): At least 113 taxpayer assistance centers, which provide free, in-person help for tax filers, will have their leases terminated or not renewed. Read more here.

ENTERTAINMENT — AMC, Cinemark Plan $500M In Luxury Upgrades (CoStar): AMC and Cinemark are investing nearly $500M in high-end renovations, adding recliner seats, premium screens and dine-in options. Read more here.

RETAIL — 7-Eleven Founding Family’s Buyout Bid Collapses (NYT): The founding family of 7-Eleven has failed in its attempt to take control of the company. Seven & i Holdings, which operates roughly 85,000 convenience stores, says it will assess alternatives, including a proposal from Circle-K owner Couche-Tard. Read more here.

GOVERNMENT — GSA’s Real Estate Division Loses 725 Employees (Federal News Network): The General Services Administration’s real estate arm saw 725 employees depart under the “deferred resignation” offer as part of federal workforce reductions. The Public Building Services division of the GSA has about 5,600 employees. Read more here.

FINANCE — Ashford Hospitality Locks In $580M Refi For 16 Hotels (Bisnow): The financing has a two-year term and three one-year extension options. It’s nonrecourse and comes with a floating interest rate of the secured overnight financing rate plus 4.37%. The hotel’s portfolio value is $861M. Read more here.

M&A — Matterport, CoStar Working With FTC (Seeking Alpha): Matterport and CoStar say they remain in discussions with the FTC despite the expiration of the HSR waiting period. The review could impact CoStar’s planned acquisition of the 3D imaging firm. Read more here.

INDUSTRIAL — Industrial Developers Turn Away From NYC (Bisnow): NYC’s City of Yes legislation requires distribution centers to go through a special permit process that would give local politicians the power to block a project. It was dubbed a “total killer” for the sector. Though the rule isn’t set to take effect for months, the state’s sector has chilled. Read more here.

M&A — Blackstone In Talks To Sell China Logistics Assets (Bloomberg): Blackstone is looking to sell logistics assets in the China Greater Bay Area to Ping An Life Insurance Co. for $372M. Blackstone will manage the projects after the sale. Read more here.

REITs — Office REITs See Signs Of Recovery (Nareit): This is "a generational opportunity for REITs to go on the offensive," Wells Fargo's Blaine Heck said. Read more here.

ENTERTAINMENT — Netflix Is Building An ‘Anti-Disneyland’ (Sherwood): Netflix is developing a theme park concept that ditches traditional rides for immersive experiences based on its shows, a more story-driven alternative to Disneyland’s attraction-heavy model. Read more here.

LEGAL — Judge Tosses Racketeering Charges Against Developer (Real Estate NJ): A New Jersey judge has dismissed racketeering charges against George Norcross, a developer tied to the redevelopment of the Camden waterfront. Prosecutors said Norcross and his codefendants engaged in a pattern of extortion, intimidation and political pressure for real estate projects. Read more here.

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So You’ve Come For An Answer

It’s in Holmdel, New Jersey. 

It was designed by Eero Saarinen and opened in 1962 for Bell Labs, AT&T's R&D arm. Located about an hour outside NYC, it has since been transformed into a lively hub for work-shop-play known as Bell Works.

Do you think you have a harder CRE news question? Email us. Take your best shot and we may feature you and your question in this space.

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The First Draft is produced by Director of Newsletters Jay Rickey, Managing Editor Catie Dixon, Editor-in-Chief Mark F. Bonner and Deputy Newsletter Editor Kayla Carmicheal, with an assist from AI. We’d love your feedback! Email us at firstdraft@bisnow.com.