BUILDING ‘BOUTFACE

In 12/25, construction spending on data centers at $3.57b and at $45.1b seasonally adjusted and annualized, topped construction spending on office buildings at $3.49b and $43.5b SAA for the first time. As recently as 20Q1, office building spending was 7x data center spending. Unrelatedly but similarly, CY2025 was the first time service-oriented tenants (think Botox clinics) leased more than 50% of all retail space leased, surpassing goods-based retail (think Macy’s).