China’s In Trouble (Deep Dive Below): Evergrande, China's second-largest developer, is liquidating with $300B in unpaid bills. Chinese officials are implementing property relief measures, including a $46M loan to a state-backed development and a "project whitelist" mechanism to support eligible real estate companies. The whitelist has been extended to 107 developments in Nanning and 314 projects in Chongqing, requiring $83B in financing. Home-buying restrictions in Suzhou and Shanghai are also lifted. These measures are part of a larger economic initiative, including a $140B liquidity injection into the banking system, following Evergrande's default on offshore bonds in 2022 and subsequent court-ordered liquidation. (Business Insider)

Realtor Rebellion: Real estate agents Mauricio Umansky and Jason Haber have launched the American Real Estate Association (AREA) as an alternative to the National Association of Realtors (NAR). NAR has faced antitrust lawsuits and sexual harassment allegations. AREA aims to provide a nationwide home listing database and allow agents to set their own commission rates. The founders are funding the organization themselves but plan to raise $50-100M from investors. Membership dues will be $400-500, half of what agents pay to NAR and their local Realtor organizations. (NYT)

Sky-Flopper: A 96-year-old Chicago landmark building was sold for $4M, almost 90% less than its 2012 trading price. The 240K SF, 12-story building at 300 W. Adams Street was sold to investor Igor Gabal. It is currently 50% occupied. This was one of only two office investment sales in Chicago's CBD in the fourth quarter, both at a significant discount. The direct vacancy rate in Chicago's CBD increased by 20 bps in the fourth quarter to 20.2%, up 160 bps year-over-year. Net absorption was negative 412K SF in the fourth quarter, bringing the year's total to negative 1.6M SF. Direct leasing activity measured 1.5M SF in Chicago during the fourth quarter, about 40% lower than the pre-pandemic quarterly average of 2.6M SF. (Globe St)

Now, let’s talk about China, where the property sector accounts for an astounding 30% of GDP (it’s 17% in America) and is cooling off faster than the enthusiasm at a vegan barbecue. But don't worry, the government assures it's a 'controlled slowdown.' Kind of like my treadmill assures me I'm in cool-down mode when, in reality, I've just collapsed on the belt.

Let’s go…