Friday, September 11, 2026

On Tap Today

  • Quantum leap: Quantum computing may one day soon break our current encryption, and smart buildings have to start preparing now.

  • Solar flare-up: Cold storage operator seeks over $1 billion after rooftop solar fire destroyed warehouse.

  • Abatement debate: Tishman Speyer's $2.7 billion Hudson Yards tower seeks a nine-figure tax break.

Essential Metrics

Daily Market Snapshot
S&P 500 7,591.70 −44.66 (−0.58%)
FTSE Nareit All Equity REITs 824.56 −15.19 (−1.81%)
10-Year Treasury 4.95% +11 bp
SOFR 3.62% −2 bp
Data as of market close September 10, 2026. FTSE Nareit change is from its September 8 close; SOFR reflects the September 10 trade date.
The S&P 500 fell 0.58 percent to 7,591.70 as oil settled above $100 a barrel and August producer prices firmed the case for a Federal Reserve rate increase next week. The 10-year Treasury yield jumped 11 basis points to 4.95 percent, its highest close since October 2023, after the Treasury Department's expanded buyback absorbed only half the bonds offered, pushing fixed-rate take-out coupons and refi underwriting spreads wider still. The FTSE Nareit All Equity REITs index slid 1.81 percent from its September 8 close to 824.56 as the long end squeezed cap rate spreads that were already thin. SOFR eased two basis points to 3.62 percent, a modest reprieve on floating-rate carry for bridge and construction paper that a hike next week would erase.

Perspectives

How Quantum Computing Is Forcing a Smart Building Security Overhaul

Smart building hardware routinely stays in service for 15 to 20 years, which means the edge controllers being specified today will still be running when quantum computing breaks the encryption protecting them. Buying legacy cryptography now guarantees an expensive rip-and-replace before the decade is out.

The threat is already active. Adversaries are collecting encrypted building data today with the expectation of decrypting it once quantum capability matures. NIST finalized post-quantum standards in 2024, the NSA begins requiring compliance in January 2027, and Q-Day is expected between 2030 and 2035.

Most buildings run on unmanaged vendor VPNs and exposed edge controllers that cannot support remote cryptographic updates at scale. Getting ready means software-defined zero trust, hardware with processing headroom for heavier math, and treating AI agents as identities rather than password holders.

Read More
Fast Take

Tishman Speyer Seeks $100 Million Abatement for Hudson Yards Office

New York City's Industrial Development Agency will vote September 15 on a $100 million property-tax abatement for Tishman Speyer's proposed 48-story office tower at 99 Hudson Boulevard. Construction on the $2.7 billion, 1.3 million-square-foot building is scheduled to begin in January, with completion targeted for 2030. The subsidy would be the largest economic incentive approved since Mayor Zohran Mamdani took office. Tishman Speyer acquired the site, across from the Javits Convention Center, in 2016.
The IDA estimates the tax benefits will cost the city $92.2 million while generating $860 million in direct and indirect tax revenue. Tishman Speyer already developed The Spiral in Hudson Yards, a 66-story tower that houses Pfizer's headquarters and tenants including HSBC, AllianceBernstein, and Marshall Wace. The developer argues the abatement is needed to transform a long-vacant lot into office space and create jobs. A public hearing on the application took place Thursday.
The proposed subsidy could place Mamdani at odds with his progressive base, which opposes tax breaks for wealthy developers. The mayor has previously stated that subsidies are not necessary to compete for business, and his economic agenda has focused on affordability initiatives including city-owned grocery stores. Mamdani has not commented on the application. Government watchdog groups argue Hudson Yards no longer needs incentives given the neighborhood's success, pointing to some of the city's highest office rents and blue-chip tenants including BlackRock, Wells Fargo, and KKR.
During the Bloomberg and de Blasio administrations, the IDA provided roughly $1 billion in tax breaks to Related Companies, Brookfield Properties, and Tishman Speyer for Hudson Yards projects. The neighborhood required government support after the 2008 recession forced the city to cover $360 million in interest payments on bonds backed by developer payments. Since 2018, the Hudson Yards Infrastructure Corporation has transferred about $2 billion in surplus revenue to the city after debt service. Steven Fulop of the Partnership for New York City said approving the abatement is critical to the city's competitiveness and will unlock private investment.
 
Fast Take

Cold Storage Giant Sues Over Rooftop Solar Fire at Los Angeles Warehouse

Lineage filed suit in Los Angeles Superior Court against Altus Power and Pearce Services, alleging negligence caused a June 17 fire that destroyed a 500,000-square-foot temperature-controlled warehouse in Boyle Heights. Los Palos Street Operating, an Altus subsidiary, leased the roof from Lineage to operate a solar-panel array. Lineage claims the fire started while Pearce employees performed maintenance on the panels. Millions of pounds of fresh and frozen food rotted after the blaze, triggering neighborhood complaints, citations and lawsuits over odors and pests.
Lineage seeks more than $1 billion in damages, including property and reputational losses, cleanup costs and settlements from resident lawsuits alleging health concerns. Altus and Pearce both dispute the claims. Altus called Lineage's allegations misinformation and said the cold-storage operator bears legal responsibility for site remediation. Pearce said investigation into the fire's cause remains ongoing and it plans to defend itself in court.
Lineage's suit alleges the rooftop solar array sparked a smaller fire in August 2024. Many warehouse operators have installed rooftop solar panels over the past decade to cut energy costs and reduce emissions. Walmart sued Tesla in 2019 over solar panels that allegedly sparked fires on store roofs, a case the companies settled months later.

Overheard

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