As Tariff Uncertainty Looms, CBRE and Cushman Strike Different Notes

Monday, May 5, 2025

• Ground game: The Commanders are leading a $3.7B plan to turn D.C.’s RFK site into a mixed-use district with housing, parks, retail, and a new stadium.

• Rocketville: Voters approved Starbase as a city, enabling faster growth and expanded SpaceX operations.

• Sunshine slump: Florida's housing market is cooling fast, with home and condo prices falling as high rates and rising costs undo pandemic-era gains.

• Multifamily outlook webinar: Join us May 20th to learn how data and tech are helping multifamily leaders adapt to tighter margins and rising renter demands. Sign up

Development

$3.7 Billion NFL Commanders Stadium Project Spurs Ambitious Mixed-Use District Vision

The Washington Commanders' proposed $3.7 billion redevelopment of the RFK Stadium site marks one of the most ambitious real estate undertakings in D.C. history. Anchored by a new 65,000-seat stadium, the project will transform 180 acres of public land along the Anacostia River into a mixed-use urban district. Beyond sports, the plan calls for 5,000 to 6,000 housing units (30% affordable), hotels, parks, a youth sportsplex, and extensive commercial and community space—shifting the site from a defunct stadium to a thriving waterfront neighborhood.

The development is being driven by a public-private partnership, with the Commanders contributing $2.7 billion and taking the lead on restaurants, hotels, and entertainment venues. D.C. will contribute over $1 billion in infrastructure and site preparation funding, but the public financing has stirred debate. Supporters say the investment will spur long-term tax revenue and jobs, while critics argue the city should prioritize housing without the stadium. The project hinges on city council approval, with a vote required before the team’s exclusive negotiating rights expire this summer.

If approved, construction is set to begin in 2026, with the stadium slated to open in 2030 and the surrounding district unfolding in phases over the following years. The master plan prioritizes high-density development, walkable streets, integrated public transit, and a mix of residential, commercial, and recreational uses. With thousands of new housing units, structured parking, retail, and public green space, officials project the site will generate $4 billion in tax revenue and more than $15 billion in direct economic impact, redefining the city’s waterfront and reshaping the future of real estate in the nation’s capital.

Overheard

SpaceX Launch Site Becomes Official Texas City

Voters in a small South Texas community have officially approved the creation of Starbase, a new city centered around SpaceX’s rocket launch site. With 212 in favor and only 6 opposed, the landslide vote formalizes Elon Musk’s long-standing vision to incorporate the area surrounding the company’s sprawling facility near Boca Chica. Many of the eligible voters are SpaceX employees or affiliates, and the outcome was widely expected.

Supporters see cityhood as a way to accelerate growth and simplify operations. The new municipality can now manage its own infrastructure, enact favorable zoning policies, and oversee road and utility planning. City status could also give SpaceX more control over launch logistics and beach access, especially as the company ramps up activity with its Mars-bound Starship program. However, as a public entity, Starbase will now be subject to state transparency laws, including open records and meetings.

Critics argue the vote effectively creates a company town, raising concerns about corporate control over public land and cultural heritage. Environmentalists and indigenous groups staged protests on nearby Boca Chica Beach, which is increasingly closed off for launches. A proposed state bill backed by SpaceX could shift authority over weekday beach closures from the county to the new city, further inflaming tensions. Despite the pushback, the result marks a milestone in Musk’s broader plan to make South Texas a launchpad for humanity’s future in space.

Condo Ownership Costs Are Already Weighing on Florida's Multifamily Valuations

Florida's housing market is experiencing its most significant downturn in over a decade, with median home prices dropping 1.7% year-over-year in March 2025, according to Redfin. This marks the first annual price decline since 2012. The surge of out-of-state buyers that fueled the post-pandemic boom has subsided, leading to decreased demand. Inventory levels have reached record highs, exacerbated by rising insurance costs and high mortgage rates, which have strained affordability.

The condo market is particularly bad, with prices falling approximately 7% in March as new regulations and increased maintenance costs deter potential buyers. Florida multifamily benefited from the pandemic migration. Some markets, like South Florida, have had increases in multifamily real estate value as much as 34 percent. Now it looks like it is started to lose some of those residents and give back some of the gains they brought with the. "The pandemic rush to Florida is dying down, and with mortgage rates being so high and staying high, it makes it really unaffordable for people paying for those high prices,” said Sheharyar Bokhari, senior economist at Redfin.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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