Alternative Investing Report - April 4, 2025

*as of 4/3; Sources: S&P, BTC, FTSE, DJRE, 30YM

While the net absorption rate for office buildings is still negative - meaning that more space is being vacated than is being leased - the rate improved for the fifth straight quarter in Q1. The multifamily sector saw a 46% increase in net absorption due to strong rental demand. Retail remains the sector with the lowest vacancy rates as demand for space continues to outpace new supply. The industrial sector is dealing with increased vacancies and though its rent growth remains the highest of any sector, it has slowed down.

➨ TAKEAWAY: While office properties still lag other sectors, there was positive rent growth as return-to-office mandates are slowly being implemented. All in all, the commercial sector had a promising Q1, and has rebounded from its post-pandemic lows. Construction rates across all sectors have been slowing, and with costs projected to increase due to tariffs, supply is likely to be constrained in the coming years. If demand stays steady, expect further rent growth and lower vacancy rates across the board.

📉 Market crash: In the wake of the new tariff policy, the S&P 500 fell 4.8%, the Dow Jones Industrial Average dropped 4%, and the Nasdaq was down 6%, the worst day for the U.S. stock market since the COVID crash five years ago.

💵 PE funds: Goldman Sachs and HarbourVest each launched evergreen private equity funds that are open to individual private wealth investors, as more and more asset managers expand their alternative asset offerings.

🤝 Republic to buy INX: The venture crowdfunding platform Republic has agreed to buy the crypto trading firm INX for up to $60 million, which will allow it to further build out its secondary marketplace offerings and tokenize real-world assets.

🚀 Fintech exits: The number of VC-backed fintech exits rose by 5.3% year-over-year in 2024, and the value of those exits grew 140% as the sector saw a number of later-stage deals with prominent IPOs on the horizon for 2025.

🪙 Crypto market update: While major coins like Bitcoin, Ethereum, and Solana saw their prices fall in the aftermath of the tariff announcements, they rebounded and have fared better than the equities markets, an interesting development in a generally risk-off trading environment.

🏡 Mortgage data: An impressive 82% of all outstanding mortgage debt is fixed below 6%, and 54% is less than 4%, illustrating how current mortgage rates leave many potential sellers “locked-in” to their existing loans.

🎨 Earliest known kiddush cup: One of the oldest known Jewish artifacts from the Middle Ages, a 1,000 year-old kiddush cup, is being auctioned at Sotheby’s this fall and carries an estimated value of $3 million - $5 million.

💵 Private credit targeting mortgages: Private lenders are looking to disrupt the residential mortgage market, offering both purchase loans and home equity loans, as the direct business lending sector continues to get more competitive.

Monday: 🚀 xAI buys X, 🎨 Hong Kong auctions
Tuesday: 🪙 Crypto enforcement, 🚀 CoreWeave IPO
Wednesday: 📊 Liberation Day, 🚀 Circle IPO
Thursday: 📉 Tariff fallout, 🏡 NYC is back

Have a great weekend!