Cycle on Aug 24, 2026

I will start by listing the active threads for this topic to understand what has been prioritized, what watches are active, and what needs resolution in this cycle.

I will read the current notes for this topic to understand what findings have already been recorded, which will help me build on top of them without duplicating or starting from scratch.

I will examine the current macroeconomic conditions and real estate sector view by calling `market_view` for kind='macro' and kind='sector' (real estate) to ground my analysis in the latest market metrics. I will also check if there are specific tickers of interest such as SLG, BXP, VNO, or EQIX. Let's do `market_view` for macro and sector first.

I will also look at the real-estate sector view to see how the REITs and real estate sector are performing.

Let's pull market views for the office REITs mentioned in the brief: 1. SL Green (SLG) 2. Boston Properties (BXP) 3. Vornado Realty Trust (VNO) Let's see if we can query these tickers. I will do this now.

Let's call `market_view` for Boston Properties (BXP) and Vornado Realty Trust (VNO).

Let's pull market view for VNO.

We have the market views for SLG, BXP, and VNO. Let's do some web searching to see what has happened recently regarding: - CMBS delinquency rates (Trepp or S&P reports for Q3 2026 or July/August 2026) - Regional bank CRE credit migration and nonperforming assets (NPA) in Q2/Q3 2026 - Office vacancy rates in SF, Seattle, Austin, Manhattan for Q2/Q3 2026 - Home price and rent divergence (Case-Shiller, Redfin, Zillow) in SF, Seattle, Austin, Manhattan, Oakland, etc. - Migration and job-posting data in AI-boom metros. Let's do a search on "Trepp CMBS delinquency rate July 2026" or "Trepp CMBS delinquency rate August 2026" or "CMBS delinquency rate 2026". Let's run a search.

Ah, "CMBS Delinquency Rate Increased 51 Basis Points in July 2026" is a very interesting headline! Let's search for "CMBS Delinquency Rate Increased 51 Basis Points in July 2026" or "CMBS delinquency report july 2026" to find the exact URL. Wait, let's fetch the URL `https://www.trepp.com/trepptalk/cmbs-delinquency-report-july-2026` or search for it to get the details of the July 2026 delinquency rate. Let's run a search specifically for this page.

These are excellent results! Let's fetch the full text of `https://www.trepp.com/trepptalk/cmbs-delinquency-report-july-2026` to see all the details of the July 2026 delinquency rate. I will fetch this page to get the exact data for my findings.

The July 2026 CMBS Delinquency Rate is 7.86% (up 51 bps in July), and the Office Delinquency Rate rose 34 bps to 11.91%! This is a significant data point. Let's see what else has happened. Let's do a search on "Super-Regional Bank 2Q 2026 Earnings: Commercial Loan Growth Returns as CRE Nonperformers" which was mentioned in one of the Trepp search results. Let's run a search for this exact title or related keywords.

Let's fetch `https://www.trepp.com/trepptalk/super-regional-bank-2q-2026-earnings-commercial-loan-growth-returns-as-cre-nonperformers-diverge` to see what is happening to regional banks and CRE nonperforming assets (NPAs). This is exactly on topic for our regional bank CRE concentration and credit migration!

Excellent! This Trepp article provides very detailed insight into Q2 2026 super-regional bank earnings and CRE credit migration. Wait, let's see if we can find more about the "Q3 2026 Metro Office Vacancy" and "Q3 2026 City-Level Housing Price Divergence". Wait! The current date is August 24, 2026. Therefore, Q3 2026 has not ended yet (Q3 ends September 30, and reports are typically released in October/November). Wait, let's check the watches. The watches are: - `NYC Rent-Stabilized Lease Rent Freeze Litigation Outcome` (fire date 2026-10-01) - `Q3 2026 Regional Bank Earnings and CRE Credit Migration` (fire date 2026-10-31) - `Q3 2026 Office and Multifamily CMBS Delinquency Reports` (fire date 2026-11-05) - `Q3 2026 City-Level Housing Price Divergence Report` (fire date 2026-11-15) - `Q3 2026 Metro Office Vacancy and Net Absorption Reports` (fire date 2026-10-15) - `Q4 2026 CMBS Hard Maturity Refinancing and Payoff Rates` (fire date 2027-01-15) Since today is August 24, 2026, none of these Q3 2026 or Q4 2026 watches have fired yet. Wait! Let's check if there are any recent updates for Q2 2026 or July/August 2026 on: - Office vacancy rates in SF, Seattle, Austin, Manhattan. Let's do a search for "office vacancy rate San Francisco Q2 2026" or "office vacancy rate Austin Q2 2026" or "office vacancy rate Seattle Q2 2026". - Let's search for "San Francisco office vacancy Q2 2026" or "Seattle office vacancy Q2 2026" or "Austin office vacancy Q2 2026". Let's run a search.

This is spectacular! Let's fetch the full text of `https://therealdeal.com/san-francisco/2026/07/01/san-francisco-office-vacancy-down-5-points-in-a-year/` or `https://hughesmarino.com/san-francisco/blog/2026/08/17/q2-2026-san-francisco-office-market-report-ai-demand-pushes-the-recovery-into-high-gear/` to get the exact quotes. Let's do a search or fetch for `https://hughesmarino.com/san-francisco/blog/2026/08/17/q2-2026-san-francisco-office-market-report-ai-demand-pushes-the-recovery-into-high-gear/` first, or search for it. Let's fetch it.

Wow, this is an incredibly detailed and rich source of information for San Francisco office market recovery and bifurcation! Let's see: - Direct vacancy fell to 29.7% in Q2 2026, down from 34.7% a year ago. - Net absorption reached 2.9M SF in the first half of 2026, exceeding all of 2025. - AI companies drove 30% of leasing activity and 3/4 of net absorption. - Some specific submarket clustering is happening: Showplace Square is emerging as an AI/robotics cluster (Amazon Robotics 250k SF, Scale AI 180k SF at 650 Townsend). - Transamerica Pyramid was acquired for $700 million. - Distress is still present: 415 Natoma Street (5M) went through a discounted deed-in-lieu of foreclosure transaction. Let's do a search on Seattle and Austin office vacancy rates for Q2 2026 to see if we can find similar specific data points. I will run a search now.

This is excellent. Let's fetch `https://www.colliers.com/en/research/puget-sound/puget-sound-office-report-2026-q2` or search for it to get exact details on Seattle's CBD and Bellevue's CBD. Let's do a search.

Let's fetch the Colliers Q2 2026 Seattle office report download or see if we can search for more details on Seattle office vacancy. It says "Office vacancy in the Seattle CBD ended the quarter at 36.2%, amongst the highest in the U.S. By contrast, Bellevue CBD vacancy is now at 22.4%." Wait! Let's search for "Austin office vacancy Q2 2026" or "Austin office vacancy rate second quarter 2026" to get the latest data on Austin. I will run a search.

This is wonderful! Let's fetch the Colliers report or the CRE Daily brief on Austin office vacancy: `https://www.credaily.com/briefs/austin-office-vacancy-drops-as-absorption-outpaces-leasing/` to get the exact quotes and metrics. Let's do a fetch.

This is great! Let's do some more research on Case-Shiller or Zillow/Redfin housing price divergence across metros (SF, Austin, Seattle, Oakland, etc.) for Q2/Q3 2026. Let's search for "Zillow home value index San Francisco Austin Seattle 2026" or "Case Shiller home prices 2026" or "Redfin home prices San Francisco Austin Seattle 2026". Let's run a search.

Wow, this Redfin report "U.S. Home Prices Rose 0.27% in July" is from July 2026 (or published in August 2026 for July data) and provides the EXACT numbers for the home price divergence! Let's see: - San Francisco home prices rose 1.5% month over month and **13.3% year over year** in July 2026! - Oakland home prices rose 1.3% month over month and 2.5% year over year in July 2026. - Austin home prices fell -0.6% month over month and **-1.0% year over year** in July 2026. - Seattle home prices rose 0.1% month over month and 0.6% year over year in July 2026. - San Jose home prices fell -0.1% month over month and rose 2.1% year over year. - Texas metros are seeing declines: San Antonio -2.1% YoY, Fort Worth -1.3% YoY, Dallas -1.0% YoY, Austin -1.0% YoY. Why? Because there are "roughly twice as many sellers as buyers" in those places, leading to price cuts and buyer negotiations. - Meanwhile, the AI boom is driving strong homebuying demand in San Francisco. Let's fetch the full text of `https://www.redfin.com/news/home-price-index-july-2026/` to ensure we have all the quotes. Wait, the `web_search` results already gave a very substantial excerpt of the page `U.S. Home Prices Rose 0.27% in July` with the complete table of 50 metros! Let's fetch it just in case there are more details or quotes we want to use. Let's do a fetch of `https://www.redfin.com/news/home-price-index-july-2026/`.

That's fine, our previous search result returned the exact text we need from that page, including the table and key paragraphs! Wait, let's look at the other aspects of the brief: - Regional-bank CRE concentration risks. - CMBS delinquency rates (Trepp July 2026 report showed delinquency rate at 7.86%, office at 11.91%, multifamily at 7.69%). - Data center geography (county-level bifurcation). Is there any new data on data centers in the last month? Let's check. Let's search for "data center geography" or "data center real estate 2026" or "data center county real estate 2026". Let's run a search.

This is fantastic! Let's fetch `https://www.nahb.org/blog/2026/07/servers-over-shelter-ai-data-centers-outbidding-home-builders-for-land` to see the details of data centers outbidding home builders for America's land. This directly speaks to the housing and residential market bifurcation and data center geography. I will fetch this page now.

This is an outstanding, highly detailed report from July 30, 2026, about data center land acquisitions outbidding homebuilders! Let's analyze the findings we can refine or write: 1. **San Francisco Office Market Recovery & Bifurcation:** - We have an existing finding: `office-vacancy-metro-divergence-sf-seattle-austin` (Tech Metros Diverge: San Francisco Office Rebounds via AI While Seattle and Austin Stabilize). We can refine this note to incorporate the Q2 2026 actuals! - San Francisco: vacancy fell to 29.7% in Q2 2026 (down from 34.7% a year ago, the fastest decline of any major U.S. metro). Year-to-date net absorption reached 2.9M SF, exceeding all of 2025. Showplace Square is emerging as an AI/robotics cluster (Amazon Robotics 250k SF lease, Scale AI 180k SF at 650 Townsend). We also have the $700M Transamerica Pyramid sale and 415 Natoma (5M) discounted deed-in-lieu of foreclosure. - Seattle: vacancy rose to 23.4% regionally, with Seattle CBD at 36.2% and Bellevue CBD at 22.4% (extreme local bifurcation). - Austin: vacancy fell modestly to 20.6% in Q2 2026 (down from 21.2% in Q1 2026 and 22.3% a year ago), with positive net absorption of 735.3k SF. However, asking rents fell to $44.79 PSF, and the CBD remains very soft at 29.1% vacancy with negative net absorption. 2. **Housing Market Divergence (Redfin July 2026 report):** - We have an existing finding: `us-housing-market-regional-fracture-case-shiller` (Localized Housing Cycles Fracture the National Real Estate Market: Seattle and Austin Slide While San Francisco Surges). We can update this finding to include the July 2026 Redfin Home Price Index data! - San Francisco home prices surged **13.3% year-over-year** in July 2026 (the fastest annual price growth in the nation), with a 1.5% MoM increase. - Austin home prices fell **-1.0% year-over-year** (and -0.6% MoM), Dallas fell -1.0% YoY, Fort Worth fell -1.3% YoY, and San Antonio fell -2.1% YoY. - Seattle home prices grew just 0.6% YoY (+0.1% MoM). - This shows a massive divergence between San Francisco's AI wealth-fueled boom and the Texas supply glut (where there are twice as many sellers as buyers). 3. **Data Center Land Rush outbidding residential/industrial development:** - We have an existing finding: `data-center-geography-county-level-bifurcation` (Data Center Geography: County-Level Economic and Housing Bifurcation). We can update this note using the new NAHB report (July 30, 2026) and Avison Young data! - Data center land deals surged 141% YoY to $3.3 billion in Q1 2026, accounting for 30% of all development spending in the U.S. (up from 19% in 2025). - Northern Virginia land prices: SDC Capital Partners paid $615M for 97 acres in Loudoun County ($6.3 million per acre); Microsoft paid $465.5M for 124 acres in Prince William County ($3.75 million per acre); Starwood Capital Group bought 42 acres in Fairfax County for $166.8M ($4 million per acre). - Texas Route 67: land that sold for $20,000 to $40,000 per acre a few years ago is selling for more than $350,000 per acre by 2026, making residential development financially unfeasible. - Elk Grove Village, IL: Stream Data Centers bought and razed 55 homes to make way for a data center campus. 4. **Regional Bank CRE Credit Migration (Trepp Q2 2026 earnings analysis):** - We have an existing finding: `regional-bank-cre-concentration-risks` (Regional Bank Performance Diverges from Embedded Commercial Real Estate Risks). We can update this note using Trepp's Q2 2026 super-regional bank earnings analysis! - Asset quality is diverging: Huntington's NPA ratio rose 13 bps, KeyCorp's rose 11 bps, and Fifth Third's rose 3 bps. Truist and U.S. Bancorp reported higher CRE nonperforming balances. - This highlights that while headline credit measures are masked by strong C&I and relationship-driven loan growth, CRE nonperformers are silently migrating upward. 5. **Office CMBS Delinquency Rates (Trepp July 2026 report):** - We have an existing finding: `office-cmbs-delinquency-all-time-high` (Office CMBS Delinquency Rates Hover Near Record Highs Amid Maturity Wall Crisis). We can update this note with the July 2026 Trepp report! - The CMBS delinquency rate surged 51 bps to 7.86% in July 2026, driven by non-performing matured balloon loans (which made up 65% of newly delinquent balances). - Office delinquency jumped 34 bps to 11.91%, with a large Chicago office tower and a Seattle office portfolio becoming non-performing matured balloons. - Multifamily delinquency jumped 46 bps to 7.69%, driven by Sunbelt properties and New York City related-party guarantor defaults. Wait! Let's check if we should write a new finding or update existing ones. The rules say: "When writing a finding that refines one of the above, reuse its slug to update. Otherwise pick a fresh slug." We can update: - `office-vacancy-metro-divergence-sf-seattle-austin` - `us-housing-market-regional-fracture-case-shiller` - `data-center-geography-county-level-bifurcation` - `regional-bank-cre-concentration-risks` - `office-cmbs-delinquency-all-time-high` Let's carefully verify the rules for writing notes: - Use the exact slug to update. - No YAML frontmatter. - The title is the first `# ` heading. - Ground it in concrete evidence: name and link the actual source(s), carry 1-2 representative verbatim quotes, kept with their links, then interpret. - Do not write from memory. - To link another finding, write its slug as a wikilink `[[its-slug]]`. - Cite the public-markets `/markets` URL if we use market data (e.g. SLG, BXP, VNO, real-estate, macro). Let's check if there are other public market tickers of interest. Yes, we pulled SLG, BXP, VNO. We can mention their latest metrics (like SLG's $312.2M office sale, VNO's $900M commitment to 350 Park Avenue, and BXP's steady guidance) to ground the office REIT section. Let's double check if we need to call `list_threads` or anything. We already did that. Let's see if any watch has fired. Wait, let's look at the watches: - `NYC Rent-Stabilized Lease Rent Freeze Litigation Outcome` (fire date 2026-10-01) - Not yet. - `Q3 2026 Regional Bank Earnings and CRE Credit Migration` (fire date 2026-10-31) - Not yet, but we have Q2 2026 data. - `Q3 2026 Office and Multifamily CMBS Delinquency Reports` (fire date 2026-11-05) - Not yet, but we have July 2026 data. - `Q3 2026 City-Level Housing Price Divergence Report` (fire date 2026-11-15) - Not yet, but we have July 2026 data. - `Q3 2026 Metro Office Vacancy and Net Absorption Reports` (fire date 2026-10-15) - Not yet, but we have Q2 2026 data. - `Q4 2026 CMBS Hard Maturity Refinancing and Payoff Rates` (fire date 2027-01-15) - Not yet. So none of the watches have fired, but the current data represents important intermediate progress. We will keep these watches active and write notes updating our findings. Let's write/update the findings one by one. ### Finding 1: `office-vacancy-metro-divergence-sf-seattle-austin` Let's review the current note. We'll update it to include Q2 2026 metrics for SF, Seattle, and Austin. Let's check the title of `office-vacancy-metro-divergence-sf-seattle-austin`: "Tech Metros Diverge: San Francisco Office Rebounds via AI While Seattle and Austin Stabilize". Let's draft the updated note. Key quotes from Hughes Marino for SF: > "The San Francisco Chronicle reported that citywide vacancy fell about 5 percentage points year over year to roughly 29.7%, down from 34.7% a year ago, the fastest decline of any major market in the country." > "artificial intelligence companies are the primary engine of the recovery, and their footprints are no longer confined to a handful of trophy buildings and suites under 10,000 SF." > "Net absorption year to date has already exceeded all of 2025, driven primarily by AI and frontier technology companies." Key quotes from Colliers/CRE Daily for Austin: > "Austin’s office vacancy declined to 20.6% in Q2 2026, down from 21.2% the previous quarter, per Colliers." > "The CBD remains particularly soft, with 29.1% vacancy and negative net absorption." Key quotes for Seattle: > "Office vacancy in the Seattle CBD ended the quarter at 36.2%, amongst the highest in the U.S. By contrast, Bellevue CBD vacancy is now at 22.4%." Let's also look at the public-market views of SL Green, Boston Properties, and Vornado to ground the financial side: - SL Green (SLG) recently sold its 10 East 53rd Street office building in Manhattan for $312.2 million (92% leased) in August 2026, demonstrating liquidity for well-located assets. Its Q2 2026 revenue rose 27.3% YoY to $264.0M, but it reported a net loss of $26.5 million, carrying $5.17 billion in total debt (Debt/EBITDA of 14.5x) (source: [/markets/SLG/2026/08/24](/markets/SLG/2026/08/24)). - Boston Properties (BXP) reported solid Q2 2026 revenue of $895.7 million (up 3.7% YoY) and FCF of $311.6 million, though with a high total debt load of $16.36 billion (Debt/EBITDA of 10.1x) (source: [/markets/BXP/2026/08/24](/markets/BXP/2026/08/24)). - Vornado (VNO) committed $900 million to a joint venture to build a $6.2 billion trophy office tower at 350 Park Avenue, carrying $8.16 billion in total debt against a $7.76 billion market cap (source: [/markets/VNO/2026/08/24](/markets/VNO/2026/08/24)). Let's write the note `office-vacancy-metro-divergence-sf-seattle-austin`. I will prepare the markdown. No

I will write the updated note for `office-vacancy-metro-divergence-sf-seattle-austin` using the Q2 2026 office market data for San Francisco, Austin, and Seattle, as well as the public-market metrics for major office REITs.

I will now write/update the next note, `us-housing-market-regional-fracture-case-shiller`. I will update this note to include the July 2026 Redfin Home Price Index data, which shows a massive annual price surge in San Francisco (+13.3%) compared to price declines in Texas metros (such as Austin at -1.0% and San Antonio at -2.1%) due to a massive supply glut.

I will now write/update the next note, `data-center-geography-county-level-bifurcation`. I will update this note to include the new NAHB report (from July 30, 2026) and Avison Young data showing that data center developers are aggressively outbidding residential developers for buildable land, with land deals surging 141% YoY to $3.3 billion in Q1 2026. This is highly relevant to the geographic bifurcation.

I will now write/update the next note, `regional-bank-cre-concentration-risks`. I will update this note using Trepp's Q2 2026 regional bank earnings analysis, which shows a widening divergence in asset quality, specifically rising nonaccruals and CRE nonperforming assets at banks like Huntington, KeyCorp, Fifth Third, Truist, and U.S. Bancorp, despite strong headline earnings.

I will now write/update the final note, `office-cmbs-delinquency-all-time-high`. I will update this note using Trepp's July 2026 CMBS Delinquency Report, which shows the CMBS delinquency rate surging 51 basis points to 7.86%, with office delinquency climbing to 11.91% and multifamily to 7.69%. This directly reflects the commercial real estate distress and refinancing friction.

I have successfully written and updated all five relevant notes with highly specific, cited, and quoted data from our research. Let's call `finish_cycle` to complete this research cycle. I will execute this now.

I have successfully completed this research cycle. Here is a summary of the findings and updates recorded in this cycle: ### 1. **Tech Metros Diverge: San Francisco Office Rebounds via AI While Seattle and Austin Stabilize** * **Slug:** `office-vacancy-metro-divergence-sf-seattle-austin` (Updated) * **Key Findings:** * **San Francisco** is leading the nation with a rapid office recovery. Citywide vacancy fell to **29.7%** in Q2 2026 (down from 34.7% in Q2 2025). YTD net absorption reached **2.9 million SF**, already exceeding all of 2025. AI companies drive 30% of leasing and over 3/4 of net absorption. Showplace Square is solidifying as an AI/robotics cluster (Amazon Robotics' 250k SF lease, Scale AI's 180k SF at 650 Townsend). * **Austin** is showing signs of slow stabilization, with vacancy dropping to **20.6%** in Q2 2026 (down from 22.3% a year ago) and positive net absorption of **735,300 SF**. However, asking rents fell to **$44.79 PSF**, and the East submarket still faces a **35.3% vacancy rate**. * **Seattle** is experiencing a highly bifurcated market. The Seattle CBD is struggling with **36.2% vacancy** (amongst the highest in the U.S.), whereas Bellevue CBD is much tighter at **22.4% vacancy** with higher asking rents. * **Public REITs:** SL Green (SLG) demonstrated liquidity by selling its 10 East 53rd Street property for **$312.2 million**, but carries high leverage (**14.5x Debt/EBITDA**). Vornado (VNO) committed **$900 million** to the $6.2 billion, 1.9M SF trophy tower development at 350 Park Avenue. ### 2. **Localized Housing Cycles Fracture the National Real Estate Market: Seattle and Austin Slide While San Francisco Surges** * **Slug:** `us-housing-market-regional-fracture-case-shiller` (Updated) * **Key Findings:** * **San Francisco** home prices surged **13.3% year-over-year** in July 2026 (+1.5% MoM), indicating that the local AI wealth boom is supercharging residential demand. * **Texas Metros** are leading the nation in housing price declines due to a massive oversupply (roughly twice as many sellers as buyers). In July 2026, San Antonio fell **-2.1% YoY**, Fort Worth fell **-1.3% YoY**, Dallas fell **-1.0% YoY**, and Austin fell **-1.0% YoY**. * **Seattle** remained stable but quiet, with home prices growing just **0.6% YoY**. This highlights that the flat national average (+0.27% MoM) completely hides the extreme regional divergence. ### 3. **Data Center Geography: County-Level Economic and Housing Bifurcation** * **Slug:** `data-center-geography-county-level-bifurcation` (Updated) * **Key Findings:** * U.S. data center land acquisitions skyrocketed **141% YoY** to **$3.3 billion** in Q1 2026, representing **30% of all U.S. land development spending** (up from 19% in 2025). * In Northern Virginia, data center developers are paying massive premiums, completely outbidding homebuilders for buildable land. Loudoun County land commanded **$6.3 million per acre** (vs. a median of $125k), and Prince William County land commanded **$3.75 million per acre** (vs. a median of $93k). * In Texas, land along U.S. Route 67 that had sold for $20,000 to $40,000 per acre a few years ago is selling for **more than $350,000 per acre**, making residential development financially unviable. * In Elk Grove Village, Illinois, Stream Data Centers purchased and demolished **55 single-family homes** to build a data center campus. ### 4. **Regional Bank Performance Diverges from Embedded Commercial Real Estate Risks** * **Slug:** `regional-bank-cre-concentration-risks` (Updated) * **Key Findings:** * Q2 2026 super-regional bank earnings showed strong sequential net interest income (NII) and revenue growth, but credit quality is starting to diverge. * Nonperforming assets (NPAs) are silently migrating upward: **Huntington**'s NPA ratio rose **13 bps**, **KeyCorp**'s rose **11 bps**, and **Fifth Third**'s rose **3 bps** sequentially. Truist and U.S. Bancorp also reported higher CRE nonperforming balances. * This highlights that robust Commercial & Industrial (C&I) loan growth is masking rising credit stress in regional bank CRE books. ### 5. **Office CMBS Delinquency Rates Hover Near Record Highs Amid Maturity Wall Crisis** * **Slug:** `office-cmbs-delinquency-all-time-high` (Updated) * **Key Findings:** * The overall CMBS delinquency rate surged **51 basis points to 7.86%** in July 2026, driven by a wave of very large loans hitting their maturity wall without refinancing. * **65% of newly delinquent balances** were classified as non-performing matured balloons. * The **office CMBS delinquency rate** rose to **11.91%**, driven by large Chicago office tower and Seattle office portfolio loans failing to refinance. * The **multifamily CMBS delinquency rate** jumped **46 basis points to 7.69%**, driven by older, overbuilt Sunbelt assets (e.g., in Ohio and Texas) and related-party sponsor defaults in New York City. All five notes have been updated, and the cycle has been successfully closed. Let me know if you would like to drill down on any of these aspects in the next cycle!