Thursday, November 12, 2026

On Tap Today

Token resistance: A record $6.3 billion heist makes real estate’s blockchain pitch an even harder sell.
Billionaire ballot relief: California luxury agents see deal flow return after voters reject billionaire tax.
Second chance market: Blackstone targets $3 billion for a real estate secondaries fund.
Today’s office webinar: Join us today at 1 p.m. ET for a look at how owners are repositioning office portfolios heading into 2027. Register

Essential Metrics

Daily Market Snapshot
S&P 500	7,619.38	+98.45 (+1.31%)
FTSE Nareit All Equity REITs	853.84	−0.37 (−0.04%)
10-Year Treasury	4.98%	+11 bp
SOFR	3.88%	−1 bp
S&P 500 as of market close November 11, 2026. REIT index and 10-Year Treasury as of November 10; U.S. bond markets were closed November 11 for Veterans Day. SOFR reflects the November 9 trade date.

The S&P 500 rose 1.31 percent to 7,619.38 Wednesday as CoreWeave's beat-and-raise quarter revived the AI trade and the Philadelphia semiconductor index jumped 5.7 percent, leaving the benchmark within 2.6 percent of its record. Real estate barely participated, with the S&P 500 real estate sector up just 0.02 percent, second-weakest among the 11 sectors. The bond market was closed for Veterans Day, so the 10-year Treasury yield holds at Tuesday's 4.98 percent, but Fed officials kept up the pressure: Chicago Fed President Austan Goolsbee called October's CPI report "borderline disturbing," and Dallas Fed President Lorie Logan said she sees two more quarter-point hikes. With futures now fully pricing a December move, SOFR at 3.88 percent on the November 9 trade date is likely headed higher, adding carry for floating-rate bridge and construction borrowers.

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Editor’s Pick

Did the Binance Heist Take the Last Air Out of Real Estate Tokenization?

Not long ago, tokenized real estate pitches arrived almost weekly: fractional shares of rental portfolios, deeds recorded as NFTs, coins backed by self-storage. They have mostly dried up, and the $6.3 billion theft from Binance on October 29, the largest digital asset heist on record, makes a comeback even less likely. Private market investors are now rethinking where crypto fits in their portfolios, and whether tokenization is worth the trouble at all.

Real estate was always the laggard. Treasuries and private credit have scaled on-chain, but property deals are slow for reasons a token can’t fix: title still has to be searched, and buildings still have to be inspected and managed. The breach, which Binance traced to North Korean hackers posing as recruiters, also shows how AI makes that kind of social engineering cheaper to run at scale, while quantum computing threatens the cryptography behind the major chains on a timeline that keeps getting shorter.

The bigger lesson may be about the middlemen blockchains were supposed to eliminate. Human signatures and the ability to freeze or reverse a bad transfer were never just adding cost to a transaction. They were absorbing risk, and the crypto industry’s scramble to rebuild those safeguards in software is making the case for them better than any skeptic could.

Where could technology have the greatest impact on your property tax risk management?

California Wealth Tax Defeat Unlocks Deals as Luxury Buyers Return

California voters rejected Proposition 40, a measure that would have imposed a one-time 5 percent tax on individuals with net worth exceeding $1 billion. The Associated Press called the race on Monday, with 52.8 percent voting no and 47.2 percent in favor. High-end residential agents reported immediate client activity following the announcement, with showing requests and transaction approvals coming in from buyers who had paused plans. Aaron Kirman of Christie's International Real Estate Southern California said three of his five billionaire clients contacted him to restart deals in Los Angeles and Atherton, California.

Agents said the tax proposal froze activity across the luxury market, affecting properties priced at $5 million and above as multi-millionaires worried about future levies. The measure drew opposition from commercial real estate figures including Marcus & Millichap founder George Marcus, The Wonderful Company's Stewart Resnick, and Anaheim Ducks owner Henry Samueli, who funded campaigns against it. Los Angeles County and San Francisco voted in favor of the tax at roughly 55 percent and 56 percent, respectively, while Orange County rejected it 59 percent to 41 percent. Douglas Elliman agent Cory Weiss received two showing requests for his West Hollywood Edition penthouse listing the evening results were announced.

High-end residential brokers view the defeat as relief for a market already strained by Los Angeles's mansion tax, which took effect in 2023 and applies to sales above certain thresholds. Newmark Estates partner Steven Schaefer said clients who considered leaving California have called to reconsider those plans. Compass's Carl Gambino cautioned that ultra-wealthy buyers remain wary of future tax measures despite the outcome. A separate ballot measure, Proposition 42, passed and bars new state taxes on financial assets and business interests, though real estate remains taxable.

The mansion tax continues to complicate transactions for sellers who purchased during the pandemic at low interest rates and now face higher borrowing costs plus the additional levy. Gambino described deals falling apart as buyers struggle to justify the combined expense of elevated rates and the tax. Agents pointed to maintenance spending and related services that billionaire property owners support, arguing the tax's defeat preserves economic activity tied to high-end real estate. Some brokers reported increased call volume for properties above $5 million in the final weekend before the election.

The Real Deal

Real Estate Reversal? Client Calls Pour in with Billionaire Tax’s Defeat

Secondaries Boom Offers Exit Path for Stranded Real Estate Capital

Blackstone is raising at least $3 billion for a new fund through its Strategic Partners division to buy stakes in other asset managers' real estate vehicles. The fund will target interests in core real estate funds, acquiring them at discounts to net asset value, with a focus on data center, rental housing and industrial assets. Strategic Partners raised $2.6 billion for a similar fund in 2023.

The fundraising comes as limited partners and asset managers search for liquidity after years of deal drought. The Federal Reserve's rate increases starting in 2022 slowed transactions across commercial real estate, while the pandemic's impact on office buildings added further pressure. Real estate secondaries deals led by fund managers reached $14.5 billion last year, up 60% from the prior year, according to Ares Management.

Continuation vehicles have become a preferred tool for managers seeking to retain high-performing assets while providing exits to investors. Private-asset firms have used these structures to extend hold periods on properties in logistics, data centers and senior housing. Ares projects real estate secondaries volumes to double over the next several years as the gap between fundraising and distribution persists.

Bloomberg

Blackstone Aims to Raise $3 Billion for Real Estate Secondaries

Office Market Trends and Portfolio Strategies webinar

Free Live Webinar · Thursday, Nov. 12

Office Market Trends and Portfolio Strategies Heading Into 2027

1:00 PM ET / 10:00 AM PT

Office markets are still adjusting to shifting tenant demand, new workplace expectations, and changing investment conditions. Join us for a look at the trends shaping the office market heading into 2027 and how owners and asset managers are positioning their portfolios to perform.

✓	Evaluating asset performance and repositioning properties
✓	Adapting leasing strategies to shifting tenant demand
✓	How tenants are actually using office space, and what that means for layouts

Speakers

	Peter Miscovich Executive Managing Director, Global Future of Work Leader, JLL
	Thierry Ondet Managing Director, ROOM
	Todd Burner Chief Product Officer, Kastle Systems
	Franco Faraudo Editor and Co-Founder, Propmodo (Moderator)