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Amazon has purchased an 87-acre parcel in Loudoun County, VA, for $87 million, marking one of the region’s largest single-site deals of 2025. This high-profile move underscores surging demand for prime data center land as AI and cloud workloads escalate.
📊 Quick Dive
The parcel sold for $1 million per acre, a new county record (CRE360).
Loudoun County is home to 70% of global internet traffic (Loudoun Economic Development).
Data center land values in the region have risen 22% year-over-year (CBRE). Read Full Signal
Google Expands Data Center Capacity, Hyperscale Demand Surges into Q4
Google has announced a major expansion of its U.S. data center footprint, leasing over 250 MW of capacity across three states. The move coincides with a record Q4 surge in hyperscale site demand, driven by generative AI workloads and cloud migration. Nationally, hyperscale leasing surpassed 1 GW in Q4, up 35% year-over-year (CBRE). Google’s expansion signals intensifying competition among major tech firms for both power and land, compressing site acquisition timelines to under 60 days for top markets. Read Full Signal
U.S. Q1 2025 CRE Distress Filings Edge to New Record, Private Restructurings Dominate
Distress filings in U.S. commercial real estate reached an all-time high in Q1 2025, with $21.7 billion in new cases reported (Moody’s). Notably, over 62% of these cases involved private, non-public restructurings, reflecting lenders’ preference for off-market workouts. Office assets accounted for 41% of filings, while multifamily distress rose 12% quarter-over-quarter. The data reflects a market where traditional refinancing remains elusive and private capital plays a growing role in resolution. Read Full Signal
Vornado Faces Potential Lender Takeover of 650 Madison Ave Amid Distress
Vornado Realty Trust is at risk of losing control of 650 Madison Avenue, a high-profile Manhattan office tower, as lenders move toward foreclosure after a missed debt payment. The $800 million loan on the asset matured last quarter, and occupancy has fallen to 68%, down from 91% pre-pandemic (Trepp). The event marks one of the largest New York office distress cases in 2025, signaling continued stress in core urban office markets. Read Full Signal
Operators and lenders should intensify due diligence on data center land and power availability, as hyperscale tenants are compressing timelines and paying record premiums for strategic sites. For distressed office and multifamily assets, the surge in private restructurings signals a shift toward non-transparent workouts, requiring more proactive lender engagement and asset triage. Investors should closely track sponsor quality and refinancing risk, particularly in gateway markets where distress is mounting and traditional capital remains selective.
Monitor further data center land trades in Northern Virginia and Phoenix as hyperscale competition accelerates.
Watch for Q2 2025 distress updates—multifamily and office segments remain at heightened risk of new filings.
Track lender actions in Manhattan and other urban office markets for signals of broader asset repricing.
Expect additional hyperscale leasing announcements from Microsoft and Meta by year-end.
Policy shifts on power allocation could further alter data center site economics.
