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The Uncertain Impact of Stablecoins on CRE
Thursday, July 24, 2025
On Tap Today
Stable as it gets: The newly passed GENIUS Act will promote the growth of stablecoins but its impacts on real estate are still unknown.
Feeing frenzy: A lawsuit against multiple Realtors’ association fees has been dismissed by a district judge.
Born to flood: New Jersey’s development plan relies on building in a known floodplain.
Upcoming webinar: How leading real estate teams are doubling down on data for mixed-use projects. Sign up
Presented by SWTCH
Shannon Wall Centre was quoted over $1 million for their EV charging project. Instead of paying it, they found a way to save a fortune.
The secret? Advanced load management technology that used their existing electrical panels to support eight chargers per circuit—slashing upgrade costs and electrifying 220 stalls.
This case study is the blueprint.
Editor’s Pick
Blackstone’s recent bid to secure a €500 million loan against the Trocadero office complex in Paris is more than just a financing maneuver—it’s a bet on Europe’s office market breathing new life. As its largest such deal since the post‑rate‑hike malaise of 2022, it signals a pivotal shift: lenders are once again eyeing trophy office assets in gateway cities with cautious optimism. Blackstone’s willingness to lean on debt reflects broader confidence that high-quality offices are poised to rebound, even as activity remains uneven.
This move follows Blackstone’s €705 million acquisition of the Trocadero complex from Union Investment, another indicator that big investors are returning to prime office assets. For real estate practitioners, the deal underscores the importance of asset quality. Prime buildings with tenant appeal, sustainable features, and strong location fundamentals are attracting capital—and refinancing—while the secondary market lags, squeezed by tighter spreads and residual weakness in demand.
From a financing perspective, this transaction is notable not just for its size but for its structure. Securing such a large loan requires competitive terms from lenders, spot‑on underwriting, and robust asset-level projections. This deal, if completed, would be a huge bet on the future of offices and could mark a paradigm shift around the perceived value of offices post COVID.
Yet even amid the optimism, offices still remain a risky bet. Market data suggests that while prime office leasing is picking up in major cities, tail risk persists. Vacancy rates and economic uncertainties still make the fate of certain underperforming offices uncertain. For stakeholders in real estate, developers, fund managers, and lenders alike, the lesson is clear: big deals are back, but only where assets check the top‑tier boxes.
Ultimately, Blackstone’s Trocadero financing isn’t just another transaction, it’s a calibrated test. It asks whether capital can be effectively deployed into offices as anchorholds of urban real estate, or whether broader market headwinds will hold the rebound hostage. Offices have certainly started to bounce back from their lows during the pandemic, but can they continue to grow in a world where hybrid work schedules remain the norm?
Overheard
US office vacancy rates are surging:
Office vacancy rates reached 20.4% in Q1 2025, an all-time high.
To put this into perspective, the post-2008 Financial Crisis peak was ~17.5%
As a result, nation-wide office prices have declined by ~40% per square foot over the last 3
— The Kobeissi Letter (@KobeissiLetter)
3:48 PM • Jun 12, 2025
Energy Management
Yesterday, a U.S. District Judge dismissed federal antitrust and state-law claims brought by Texas broker Luz (Lou) Eytalis, who had challenged NAR’s “three-way” membership requirement linking local, state, and national dues to MLS access. The broker argued that this structure coerces firms into joining—and paying for—multiple associations just to access essential commercial listing services. This ruling affirms the long-standing model under which local MLS boards, state associations, and NAR collaborate to govern service access
Eytalis’s case is part of a wave of lawsuits from brokers in Texas, Michigan, Pennsylvania, and beyond, asserting that tying MLS access to mandatory dues constitutes a monopolistic tying practice. While dismissing the complaint, the court did not fully close the door on broader antitrust claims, meaning future challenges could emerge—particularly if tied to ongoing commissions reform after NAR’s prior $418 million settlement in the Moehrl/Burnett cases.
National, state, and local Realtor associations still have the ability to charge individually. The ruling preserves the status quo, but does little to quell frustration at mandatory fees. Online listing platforms like Zillow have already started to chip away at the MLSs power over access to real estate listings. If brokers find ways to do business without paying Realtor Associations, requiring multiple memberships would be a moot point.
New Jersey is testing the boundaries between climate adaptation and housing affordability with a new proposal that would allow developers of affordable housing to apply for “hardship” exemptions from flood resilience rules.
The state’s Resilient Environments and Landscape Rules, part of a broader climate package introduced by Gov. Phil Murphy, are designed to protect new developments from sea level rise and coastal flooding. But with a shortfall of more than 200,000 affordable housing units, state officials are rethinking how strictly to enforce those protections.
The proposed revision, now open for public comment, would reduce elevation requirements and allow grace periods for specific projects. It’s a move welcomed by developers who argue that climate rules make affordable housing financially infeasible. But environmental advocates warn it could place low-income residents in high-risk flood zones with limited capacity to recover after disasters.
Housing advocates, such as Adam Gordon of the Fair Share Housing Center, argue that the state should pair any exemptions with stronger incentives to build in safer, inland areas, including converting underutilized commercial properties and allowing more backyard units in higher-elevation suburbs.
New Jersey’s effort could serve as a national test case. Can states thread the needle between affordable housing and climate resilience, or will concessions today come at a steep cost tomorrow? Either way, the floodwaters—and the housing crisis—aren’t receding anytime soon.
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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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