President Donald Trump is looking to make progress on trade during his tour of Asia this week, with upcoming meetings scheduled with the leaders of South Korea and China. As part of the trip, the US and Japan signed an agreement for a framework on the mining and processing of rare earth metals and other minerals. Meanwhile, more work is needed on trade issues involving South Korea, India, Australia and Taiwan.

Markets expect the Federal Reserve to reduce interest rates again this week, and some observers are expecting more cuts going forward. Meanwhile, the Chicago Fed is estimating that the unemployment rate has been relatively stable during the past two months.

The federal shutdown continues, and lawmakers are grappling with issues including a depletion of Supplemental Nutrition Assistance Program benefits and the start of the open enrollment period for the Affordable Care Act. Sen. Lisa Murkowski, R-Alaska, recently urged extended work hours as the impasse continues.

Chiang Ling Ng, Hines' co-head of investment management, discusses the impact of tariffs and interest rates on the real estate sector, as well as opportunities from the data center and AI boom.

The Trepp CMBS Delinquency Rate reached 7.23% in September, declining by 6 basis points in the first decrease since February. The overall delinquent balance was $43.5 billion, compared with $44.1 billion in August.

German logistics company Fiege is entering the UK market by leasing a 261,147-square-foot facility at Prologis Park Hams Hall in the West Midlands. The park, which is now fully occupied, is near major motorways and has a rail freight terminal.

Commercial property construction costs could rise 4.6% as tariffs shape the market, according to James Bohnaker, Cushman & Wakefield senior economist. While tariffs can drive up prices for imported materials, markets often adapt by finding cheaper sources, Bohnaker says. In addition, slower construction activity could moderate price pressure.

The ongoing government shutdown is creating certain challenges for commercial real estate, with around 900,000 people furloughed and the release of key market data delayed, observers say. "Development and financing that requires federal permits will be delayed," notes Wei Luo of CBRE. "Overall, there is good momentum for transaction volumes of US real estate coming out of the third quarter, which should continue into the fourth."

A national gauge of home prices increased 1.5% from the prior year in August, according to a S&P Cotality Case-Shiller. The figure, which followed a 1.6% increase in July, was the smallest gain since the middle of 2023.