Real estate stocks edge down as Treasury yields surge, borrowing costs rise

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Real estate stocks declined on a weekly basis, underperforming the broader market as Treasury yields surged and borrowing costs across the curve reached about one-year highs.

U.S. Treasury yields moved sharply higher [https://seekingalpha.com/news/4593783-treasury-yields-surge-toward-one-year-highs-as-inflation-fears-grip-wall-street] as market participants digested the inflation reports released this week, both of which came in hotter than Wall Street had anticipated.

Additionally, yields marched higher [https://seekingalpha.com/news/4593900-wall-street-falls-while-yields-rise-following-the-us-china-summit] following the U.S.-China summit ending. President Donald Trump wrapped up [https://seekingalpha.com/news/4593588-trump-wraps-china-visit-with-boeing-barrels-and-big-talk] his visit to China without securing major breakthroughs on trade or Iran.

Despite the benchmark S&P 500 rallying [https://seekingalpha.com/news/4593819-wall-street-rally-masks-rising-number-of-oversold-s-and-p-500-stocks] this week, underlying market breadth has weakened, highlighting a growing divergence beneath the surface of the broader advance. A larger share of individual components are flashing oversold conditions rather than overbought signals.

Current market data shows that 36.8% of S&P 500 stocks are considered oversold, compared with just 29.8% categorized as overbought.

This week, the S&P 500 Real Estate Index Sector (SP500-60 [https://seekingalpha.com/symbol/SP500-60]) decreased 2.59% to close at 274.56 points, while the accompanying State Street Real Estate Select Sector SPDR ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) was down 2.66% to $43.23.

The Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) declined 2.41%, while the FTSE Nareit All Equity REITs index retreated 2.47%.

WEEKLY WINNERS & LOSERS

Jones Lang LaSalle (JLL [https://seekingalpha.com/symbol/JLL]) led the largecap real estate losers, shedding 12.62% during the course of the week to close at $288.23.

CBRE Group (CBRE [https://seekingalpha.com/symbol/CBRE]) followed, with an 11.19% retreat to $129.95.

The week saw FORE Enterprise, a leading AI Solutions architect, launch [https://www.globenewswire.com/news-release/2026/05/14/3295183/0/en/fore-enterprise-partners-with-pegasus-to-launch-fore-real-an-ai-platform-for-commercial-property-management.html] early access to FORE Real, the first AI property management platform.

Pegasus, a real estate wealth advisory, helped shape FORE Real's suite of AI agents and tools to streamline tenant communications, reduce liability risk, and lower property taxes.

Jefferies noted that commercial real estate services firms, including CBRE and JLL, sold off after the news as AI disruption worries resurfaced, fueling concerns that AI could replace labor-heavy, fee-based professional services.

SBA Communications (SBAC [https://seekingalpha.com/symbol/SBAC]) sank 8.50% week-over-week to $199.62 on a report [https://seekingalpha.com/news/4591580-sba-communications-sinks-near-close-on-report-of-exclusive-talks-with-kkr] that KKR is now in exclusive talks with the tower owner and operator on a takeover.

For the gainers, Essex Property Trust (ESS [https://seekingalpha.com/symbol/ESS]) added 1.33% to $267.06. The multifamily residential REIT declared a $2.59 per share quarterly dividend [https://seekingalpha.com/news/4593524-essex-property-trust-declares-2_59-dividend] this week, in line with previous.

Among midcap stocks, Newmark Group (NMRK [https://seekingalpha.com/symbol/NMRK]) (-14.11% W/W to $14.37) and Opendoor Technologies (OPEN [https://seekingalpha.com/symbol/OPEN]) (-12.57% W/W to $4.38) led the losers.

Cushman & Wakefield (CWK [https://seekingalpha.com/symbol/CWK]) lost 12.26% week-over-week to $12.45. The real estate services provider was also adversely impacted by the launch of FORE Real.

Fermi (FRMI [https://seekingalpha.com/symbol/FRMI]) topped gainers in the category, advancing 24.47% week-over-week to $6.51. The week was volatile for the stock. Fermi holder Caddis Capital LLC said [https://seekingalpha.com/news/4590816-fermi-holder-gets-support-of-major-holder-amid-fight-with-ex-ceo] it supported the removal of CEO Toby Neugebauer and is against his push to appoint new directors and put the company up for sale.

Furthermore, Fermi posted positive Q1 earnings [https://seekingalpha.com/news/4592789-fermi-inc-gaap-eps-of-0_30] but was downgraded [https://seekingalpha.com/news/4593973-fermi-drops-after-evercore-downgrades-following-management-shakeup] at Evercore ISI after the removal of the CEO.

For smallcap stocks, eXp World Holdings (AGNT [https://seekingalpha.com/symbol/AGNT]) (-28.03% W/W to $4.75), Arbor Realty Trust (ABR [https://seekingalpha.com/symbol/ABR]) (-19.69% W/W to $5.79), Real Brokerage (REAX [https://seekingalpha.com/symbol/REAX]) (-16.18% W/W to $1.71), FRP Holdings (FRPH [https://seekingalpha.com/symbol/FRPH]) (+3.78% W/W to $21.94), Hudson Pacific Properties (HPP [https://seekingalpha.com/symbol/HPP]) (+2.83% W/W to $11.26), and Hotel101 Global Holdings (HBNB [https://seekingalpha.com/symbol/HBNB]) (+2.72% W/W to $6.05) were significant movers.

Here is a look at subsector performances for the week:
[S&P, Nareit]
Percentage-wise price change across real estate indices

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* NYC's proposed pied-à-terre tax would apply to 10K homes - report [https://seekingalpha.com/news/4593563-nycs-proposed-pied-a-terre-tax-would-apply-to-10k-homes---report]
* Mortgage rates tick down, purchase demand softens [https://seekingalpha.com/news/4593141-mortgage-rates-tick-down-purchase-demand-softens]