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Rivian Automotive beat Wall Street’s expectations for the third quarter.
The electric vehicle maker also reported its second quarterly gross profit this year.
Rivian’s gross profit included a $130 million loss in its automotive operations that was offset by $154 million from its VW joint venture and software and services.

DETROIT – Rivian Automotive beat Wall Street’s expectations for the third quarter, as the company reported a its second quarterly gross profit this year thanks to a joint venture with Volkswagen and its software and services business.
Here’s what Wall Street expected, based on average analysts’ estimates compiled by LSEG:

Loss per share: 65 cents adjusted vs. a loss of 72 cents expected
Revenue: $1.56 billion vs. $1.5 billion expected

Rivian stock was up more than 3% in extended trading Tuesday, after closing down 5.2% at $12.50 per share. The stock is off roughly 6% this year.
Regarding its gross profit, which is closely watched by investors, the company reported $24 million during the third quarter, beating FactSet consensus estimates of a $38.6 million loss. Both the company’s automotive and software and services performed better than expected.
“While we face near-term uncertainty from trade, tariffs, and regulatory policy, we remain focused on long-term growth and value creation,” Rivian CEO and founder RJ Scaringe said Tuesday in the company’s shareholder letter.

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Rivian’s stock in 2025

Rivian’s gross profit included a $130 million loss in its automotive operations — which was a $249 million improvement from the same period a year earlier — that was offset by $154 million from its VW joint venture and software and services.
Investors view gross profit as a key indicator of a business’s profitability before operating expenses, interest and taxes.

Rivian maintained its previously lowered 2025 guidance that includes an adjusted earnings loss of between $2 billion and $2.25 billion, capital expenditures of $1.8 billion to $1.9 billion and vehicle deliveries of 41,500 units to 43,500 units. It also reconfirmed a gross profit around breakeven, down from a modest profit target earlier in the year.
The company also reaffirmed production timing of its new R2 midsize vehicle for the first half of next year at the company’s sole plant in Illinois.
Rivian ended the third quarter with $7.7 billion in total liquidity, including nearly $7.1 billion in cash, cash equivalents, and short-term investments that Scaringe said has it “really well positioned” for the R2 launch.
Scaringe said Tuesday that the company does not expect concerns about rare earth minerals from China or chips from China-owned auto supplier Nexperia to delay production of the R2.

Rivian CEO Robert “RJ” Scaringe speaks at the launch of the Rivian R2 electric vehicle at the Rivian South Coast Theater in Laguna Beach, California, on March 7, 2024. 
Patrick T. Fallon | Afp | Getty Images

“This isn’t something we’re seeing as a potential for delay in R2 just because of how we built and designed the supply chain, and the readiness that’s gone into preparing for the launch,” he told CNBC’s Phil LeBeau during an interview. “In the more immediate term, Nexperia, it’s just we do need to have this resolved.”
China on Saturday said it would consider some exemptions for Nexperia chip exports, which it has ceased amid trade talks with the U.S. and after Dutch government took over the company in the Netherlands.
Rivian’s revenue for the third quarter was a 78% increase compared with $874 million a year earlier. The company’s net loss attributable to common stockholders slightly widened from $1.1 billion, or a loss of $1.08 per share, during the third quarter of last year to $1.17 billion, or a loss of 96 cents, during the most recent quarter. Excluding one time-items, including for research and development, among other things, the company lost 65 cents per share.
EV manufacturers such as Rivian face industrywide issues such as increasing costs due to tariffs and slower forecasted sales of EVs, as well as company-specific problems that include new product challenges, and regulatory changes that are negatively impacting sales and profits, including the end of consumer federal incentives.
Rivian on Tuesday lowered its expected tariff impact on new vehicles built from “a couple thousand dollars per unit” to hundreds of dollars per unit following changes by the Trump administration last month to extend an offset involving certain parts on American-made vehicles.
“It’s a pretty significant shift for us,” Scaringe told investors during the company’s quarterly earnings call regarding the more favorable tariff costs. More

Cava cut its full-year forecast for same-store sales growth as younger diners visit its restaurants less frequently.
The Mediterranean chain reported same-store sales growth of 1.9% and flat traffic for the third quarter.
Fast-casual rival Chipotle Mexican Grill reported similar behavior from the same age cohort when it released its quarterly earnings.

Pedestrians carry Cava bags along Wall Street near the New York Stock Exchange (NYSE) in New York, US, on Monday, Aug. 18, 2025.
Michael Nagle | Bloomberg | Getty Images

Cava on Tuesday cut its full-year forecast for the second straight quarter as younger consumers visit its restaurants less frequently.
“When you look at different age demographics of fast casual, the 25- to 34-year-old consumer seems to be impacted a bit more than others, and fast casual tends to have a higher concentration of those consumers within their guest portfolio,” CFO Tricia Tolivar said in an interview, adding that the company saw demand fall as it entered the final quarter of the year.

She attributed the pullback from younger consumers to the demographic’s higher unemployment rate, plus a higher likelihood of facing the student loan repayments that resumed in the spring. Moreover, tariffs imposed by President Donald Trump “created an overall fog for the consumer,” according to Tolivar.
Fast-casual rival Chipotle Mexican Grill reported similar behavior from the same age cohort when it released its third-quarter earnings on Wednesday.
For 2025, Cava is now projecting that its same-store sales will increase 3% to 4%, down from its prior outlook of 4% to 6% growth. The company also expects lower restaurant-level profit margins, decreasing its projections to a range of 24.4% to 24.8%, down from the previous forecast of 24.8% to 25.2%.
Cava shares fell 5% in extended trading. As of Tuesday’s close, the stock has tumbled 54% this year.
Here’s what the company reported for the quarter ended Oct. 5 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 12 cents adjusted, in line with expectations
Revenue: $292.2 million vs. $292.6 million expected

Cava’s same-store sales rose 1.9%, falling short of Wall Street’s expectations of 2.8%, according to StreetAccount estimates. The chain’s traffic was flat compared with the year-ago period, but menu price increases and a higher mix of premium protein options boosted sales.
Despite slower same-store sales growth, Cava is gaining market share, according to Tolivar. That fact suggests that consumers who are 25- to 34-years old may be cooking at home or packing their lunches, rather than trading down to fast food.
“It appears that the consumer is being more thoughtful around their dining occasions, and how frequently they are doing that,” Tolivar said.
Unlike Chipotle and the broader restaurant industry, Cava is seeing higher same-store sales growth from low-income consumers; Tolivar credited the chain’s choice to keep its menu prices below inflation, presenting a more affordable option for budget-conscious consumers.
Cava’s net sales climbed 20% to $292.2 million, fueled by new restaurant openings. Since the third quarter of last year, Cava has opened a net 74 locations, bringing its total footprint up to 415, as of Oct. 5.
The Mediterranean chain reported fiscal third-quarter net income of $14.7 million, or 12 cents per share, down from $18 million, or 15 cents per share, a year earlier.
Excluding executive transition costs and other items, Cava earned 12 cents per share. More

Rivian and Lucid are set to report third-quarter earnings this week, with analysts expecting growths in revenue and narrower adjusted earnings losses amid record third-quarter U.S. EV sales.
But the electric vehicle makers are facing steep challenges, from tariffs to an expected sales drop to company-specific problems that include new product challenges, and regulatory changes.
As a result, Rivian and Lucid are expected to tout future products and technology opportunities to investors during their third-quarter calls.

Brand new Lucid electric cars sit parked in front of a Lucid Studio showroom in San Francisco on May 24, 2024.
Justin Sullivan | Getty Images

DETROIT — Challenges are mounting for all-electric vehicle manufacturers Rivian Automotive and Lucid Group as the companies try to sell investors on a brighter, more profitable future to come.
But things could get worse before they get better as both automakers are set to report third-quarter results this week, starting with Rivian after the bell Tuesday, followed by Lucid on Wednesday.

Both “pure EV” companies are expected to report notable growths in revenue and narrowed adjusted earnings losses amid record third-quarter U.S. EV sales. But investors are also expecting the manufacturers to give updates on future growth opportunities as well as impacts from more challenging market conditions.
“Both of these are really challenged,” RBC Capital Markets analyst Tom Narayan told CNBC during an interview, saying he’s cautious about much near-term upside for investors. “To me, it’s all about the underlying profitability.”
Both automakers have already cut vehicle production guidance due to more challenging market conditions, while Rivian also has negatively changed its adjusted earnings and gross profit expectations for 2025.
EV manufacturers face industrywide issues such as increasing costs due to tariffs and slower forecasted sales of EVs, as well as company-specific problems that include new product challenges, and regulatory changes that are negatively impacting sales and profits, including the end of consumer federal incentives.

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Rivian, Lucid and Tesla stocks in 2025

The Trump administration this fall got rid of federal incentives of up to $7,500 for the purchase of an EV. In addition to that, it also ended the practice of fining automakers for failing to meet fuel efficiency rules. That hurts EV manufacturers, which had been counting on selling credits to legacy automakers that could offset some penalties.

Rivian this summer cut its expected earnings from credit sales from $300 million to $160 million. In connection to the change, Rivian also lowered its gross profit guidance for the year to roughly breakeven from a modest profit. It also has conducted layoffs this year to cut costs.
“While we believe deeply in the long-term value drivers of our business, the policy environment continues to be complex and rapidly evolving,” Rivian CEO RJ Scaringe said during the company’s last quarterly results call in August. “Changes to EV tax credits, regulatory credits, trade regulation and tariffs are expected to have an impact on the results and the cash flow of our business.”
Rivian has maintained that it has enough cash to get it through the launch of its new “R2” product during the first half of next year, but the ongoing changes don’t assist the company by any means.
Tariffs are hitting the automaker to the tune of “a couple thousand dollars per unit” this year, Rivian has said. Lucid also said tariff costs are hurting its profit margins this year, including $54 million during the second quarter.
“We expect the loss of the credit to be a headwind for the market in the coming quarters. Our prior elasticity of demand analysis implied that the loss of IRA [Inflation Reduction Act] credits could equate to a double-digit percent headwind to industry volumes, all else equal,” Goldman Sachs analyst Mark Delaney said in an Oct. 3 investor note on Rivian and Tesla.
Tesla, which has also sold automotive regulatory credits, reported revenue from those credits in the third quarter fell 44% to $417 million from $739 million.

Pull ahead, Q3 results

The third quarter is expected to be the peak of EV sales for the foreseeable future, as customers rushed to purchase new models ahead of the federal credits ending in September.
As a result, the companies are expected to spend more time touting future products and technology opportunities to investors during their third-quarter calls this week rather than their near-term core businesses of producing and selling EVs.

The Rivian R1R electric truck at the Everything Electric show in Vancouver, British Columbia, Canada, on Friday, Sept. 5, 2025.
Paige Taylor White | Bloomberg | Getty Images

“It remains to be seen how long the EV hangover will last in the US, though we suspect 3Q EV penetration will likely be the highest mark for quite some time,” Barclays analyst Dan Levy said in an Oct. 13 investor note.
Rivian last month reported vehicle deliveries of 13,201 vehicles during the third quarter, a 32% increase from a year earlier.  Lucid reported deliveries of 4,078 units, up 47% from 2,781 units from the third quarter of 2024.
Even with an uptick in sales, both companies are expected to report notable losses, albeit narrowed from a year ago and smaller than the second quarter.
Rivian is expected to report an adjusted earnings per share loss of 72 cents on revenue of $1.5 billion, based on average analysts’ estimates compiled by LSEG. That would compare to an adjusted EPS loss of 99 cents on revenue of $874 million a year earlier.  
When reporting its second-quarter results, Rivian said it expected its adjusted core loss to be between $2 billion and $2.25 billion this year, compared with $1.7 billion to $1.9 billion previously forecast. Analysts also have expressed concerns about Rivian’s previous goal to be profitable on an earnings before interest, taxes, depreciation, and amortization basis by 2027.
Lucid is expected to report a $2.27 adjusted EPS loss for the third quarter, down from $2.80 a year earlier (based on recalculated results following a reverse stock split), on a roughly 90% increase in revenue to $379.1 million, according to LSEG.
Narayan and other analysts have largely focused on improvements in the gross profits of the companies as proof of progress. Such results are a key indicator of a business’s profitability before operating expenses, interest, and taxes.
“[Investors] will want to see what that gross profit number is in Q3, but they also have a high bar to pass over with where consensus already is,” Narayan said.
Rivian is expected to report a gross loss of $39 million during the third quarter, according to average estimates compiled by FactSet. Lucid, meanwhile, is expected to report a $255 million gross loss, according to the estimates.
Shares of Rivian are off less than 5% this year, while Lucid’s stock is off roughly 45%, including a 1-for-10 reverse stock split in September.

Product and tech promises

Both Rivian and Lucid have tried to sell investors on the success of their future vehicles as well as technologies to save the companies from continued losses.
Rivian’s future heavily relies on its new “R2” vehicles that are expected to begin production for customers the first half of next year. The roughly $45,000 midsize vehicle, per Rivian, is expected to cut build material costs in half, reduce production complexity and significantly grow demand and sales.

Rivian CEO RJ Scaringe reacts at an event to unveil a smaller R2 SUV in Laguna Beach, California, on March 7, 2024.
Mike Blake | Reuters

“I’m more bullish on this vehicle than any product we’ve developed. I believe that the product market fit is incredible. The packaging, the technology and overall value proposition set R2 up for meaningful share,” Scaringe said in August.
However, the R2 will launch in a challenging market ripe with plenty of vehicle competition — many of which are expected to have longer EV ranges at a similar, if not lower, price.
Barclay’s Levy earlier this year did an analysis of the potential total addressable market of the R2, questioning the company’s bullishness on the product amid “risks” of weaker expected U.S. EV demand, additional costs and a more competitive market.
Narayan and other analysts also have questioned the company’s sales targets for the vehicle: “It’s a very competitive market, and you have this EV slowdown in full effect. What are the volumes they’re going to get on R2 going up against all this competition? … [General Motors] can barely get to hundreds of thousands,” Narayan said in the interview.
Rivian also has touted its potential for revenue with new technologies, such as the $5.8 billion deal it struck with Volkswagen for its software and electrical architecture.
Rivian has said the next generation of technology also is expected to help it become a leader in advanced driver-assistance systems, or ADAS, despite the automaker trailing many other systems.

A Lucid-supplied teaser image of its upcoming midsize vehicle behind its current Gravity SUV.

The story is similar at Lucid. The company has placed significant importance on the launch of its Gravity SUV, which Lucid has described as challenging, as well as a future midsize vehicle platform to broaden its market reach.
“We are not simply building electrical vehicles. We are pushing the boundaries of what EVs can be,” Lucid interim CEO Marc Winterhoff said during the company’s second-quarter call in August. “From the record-breaking performance and efficiency of the Lucid Air to the game-changing Lucid Gravity, to our upcoming midsize platform, our technology continues to redefine what’s possible.”
More recently, Lucid also has touted future ADAS technologies and the potential of personal autonomous vehicle capabilities as part of its future, despite a history of underwhelming capabilities in its current luxury models.
Lucid signed a $300 million deal with Uber in July that included the ride-hailing platform acquiring and deploying more than 20,000 Lucid Gravity SUVs that will be equipped with autonomous vehicle technology from startup Nuro over the next six years.
Other topics investors will be watching include any updates to Rivian’s timeline for its R2 production or Lucid’s production of the Gravity SUV as well as cash flows and profitability outlooks for both companies.
“We are not where we want to be with Lucid Gravity production relative to our target at this point in the year,” Winterhoff said in August. “We believe we will significantly increase production [in] the second half of the year.” More

Shares of pizza chain Papa John’s sank 10% on Tuesday following a report that Apollo Global has withdrawn its offer to take the chain private.
The deal was supposedly valued at $64 a share, according to a Reuters report.
Papa John’s will report earnings on Thursday.

Neon signage glows at dusk outside a Papa John’s International Inc. restaurant in Louisville, Kentucky, U.S., on Friday, May 1, 2015. Papa John’s is expected release quarterly earnings results after the close of U.S. financial markets on May 5.
Luke Sharrett | Bloomberg | Getty Images

Shares of Papa John’s sank 10% on Tuesday following a report that Apollo Global has withdrawn its offer to take the pizza chain private.
Reuters reported that the private equity firm backtracked on its bid, valued at $64 a share, about a week ago. The firm previously submitted an offer for Papa John’s alongside Irth Capital Management, according to Reuters.

Apollo and Papa John’s did not immediately respond to requests for comment.
Papa John’s is preparing to release its third-quarter earnings report on Thursday. The company’s stock is down nearly 30% in the last year.
The report comes as restaurants and other consumer-focused companies have been reporting sluggish sales amid rising inflation and costs.
Last week, Chipotle executives said the fast food chain saw a 0.8% traffic decline, marking the third straight quarter of declines and a pullback in consumers across all income cohorts. Procter & Gamble reported in October that its lower-income customers are significantly paring back their spending.
The report follows another significant deal development in the restaurant space. Earlier on Tuesday, Yum Brands said it plans to review strategic options for Pizza Hut, following years of struggles for the pizza chain. More

Before the craze for Labubus, few had heard of Pop Mart, the Chinese toymaker behind the mischievously grinning dolls. With customers across the world now lining up to get their hands on one, the company, which saw its sales rocket by 245% year on year in the quarter from July to September, has investors rapt. More

Evergreen funds are specifically structured to allow for more liquidity.
Fund managers are incentivized to buy assets as soon as they can snap them up. 
Goldman Sachs’ Marc Nachmann says there’s risk to the rise of evergreens: “One of the concerns is, are you feeling too much pressure from the flow in the evergreen fund, and are you ending up doing deals that are not as good of a return.”

A version of this article appeared in CNBC’s Inside Alts newsletter, a guide to the fast-growing world of alternative investments, from private equity and private credit to hedge funds and venture capital. Sign up to receive future editions, straight to your inbox.
Wealthy individuals have been pouring into alternative assets in recent years, thanks in part to the explosion of evergreen funds, a certain type of fund specifically structured to allow for more liquidity. The catch is, the capital that goes into these funds often has to be spent right away, and that may be creating distortions in the markets. 

Think of this deployment structure as a gift card with $100 on it. In the traditional, illiquid model (typically sold to institutional investors) a fund manager can take that gift card and spend it whenever he or she wants – perhaps when assets go “on sale.” But that’s not how it works with evergreen funds. Their hypothetical $100 starts to lose its value each day the money isn’t spent. Therefore, they’re incentivized to buy assets as soon as they can snap them up. 
That may be palatable if evergreen funds represent a small proportion of the overall marketplace, but with their rapid ascension, some experts are raising concerns that too many managers are spending too much money all at the same time. 
That dynamic, at best, could put a ceiling on future returns. At worst, well — things could get ugly. 
Goldman Sachs’ Marc Nachmann runs asset and wealth management for the firm. Goldman has its own “G-Series” suite of open-ended funds across a variety of investment strategies. Nachmann said that while returns could ultimately be limited by the proliferation of evergreens, he thinks it will also create differentiation, similar to a “credit cycle.” 
“Some people will let the deployment push investing decisions,” Nachmann said in an interview. “One of the concerns is, are you feeling too much pressure from the flow in the evergreen fund, and are you ending up doing deals that are not as good of a return – or not as good deals – because you have deployment pressure.”

Nachmann added that type of pressure is something he pays close attention to.
“As an example, I don’t have deployment targets for my team, because the last thing I want is anybody feeling like they have to deploy for any reason,” he said. 

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The universe of evergreen private market funds is estimated to be about $427 billion, according to PitchBook, and with current trends, total assets could surpass $1 trillion within the next five years. That compares with the market for traditional, drawdown funds, which has about $15 trillion in assets and is expected to grow to more than $20 trillion over that time frame, according to PitchBook. 
In addition to Goldman, many of the largest managers – including Apollo Global, Brookfield and KKR – have these types of products. And to be sure, multi-asset managers can offer diversified evergreen funds – spanning multiple industries, strategies and asset classes – which can allow them to shift allocations to areas where they see the most opportunity.
However, one of the strategies where there’s perhaps the greatest risk of market distortion is in the secondary market, where the alternative investors purchase and sell existing ownership stakes – usually at a discount. 
As more evergreen funds flood the markets, that discount is narrowing. In the first half of 2025, evergreen funds offered to buy secondaries at 91.1% of net asset value, on average, according to PitchBook, citing Campbell Lutyens data. That represented 432 basis points more than the average pricing in the broader market, up from a 403 basis point differential in 2024. 
The competition for secondary deals has already “bruised traditional buyers,” according to Pitchbook, noting that attorneys advising on these transactions said their traditional buy-side clients are often losing out to retail funds in auctions. 
The key question is whether too much money in the private markets causes the private market premium to ultimately disappear. 
“Deployment is the issue,” said Rajib Chanda, who is head of asset management at Simpson Thacher, leading the design, development and structuring of products by alternative asset managers who are broadening access. “People want to have certainty as to timing and amount of deployment – that is a feature for the consumer and a bug for the investor.” 
And it’s worth noting: That trade-off for liquidity does not mean that investors in evergreen funds can get their capital out anytime. Goldman’s Nachmann also said it’s important to educate retail investors that “semi-liquid” does not mean “liquid.” 
“These are illiquid private assets, so you cannot expect the same liquidity as you have from buying a public stock, that you can go and buy and sell any minute,” Nachmann said. “That is really important – that education and that communication is out there. And that goes then to asset allocation: What percentage of your assets can be illiquid?”  More

Netflix’s “KPop Demon Hunters” has delivered a boost to K-pop music and the “Big Four” stocks in the space: HYBE, JYP Entertainment, SM Entertainment and YG Entertainment.
Analysts say the popularity could spread to all of K-culture, including cosmetics and food products.
On the political front, speculation is high that China could soften its restrictions on Korean content.

At South Korea’s largest amusement park, crowds of people wait for hours to be a part of the “KPop Demon Hunters” craze.
U.S. streaming giant Netflix, the distributor of the Sony Pictures Animation film, has collaborated with the Everland park outside of the capital city Seoul to create a themed zone featuring whack-a-mole, dance games and snacks from the movie.

It’s the latest iteration of the “KPop Demon Hunters” frenzy as the film takes Netflix by storm — and delivers a boost to the $10 billion K-pop music industry along with it.
Netflix said in August that “KPop Demon Hunters” had become the most popular Netflix film ever. In October, the streamer said “KPop Demon Hunters” had exceeded 325 million views. 
The company has sought to capitalize on the popularity, offering two limited-window theatrical screenings for the film and striking consumer product deals with Hasbro and Mattel to get “KPop Demon Hunters” toys and merch on shelves.
Agnes Lee helped cast the movie and scout locations from Seoul as an associate producer for the film. 
“K-pop and K-culture was such a huge and important part of this movie,” Lee told CNBC in Seoul. “We wanted to be authentic.”

Once popular mainly in Asia, K-pop music has become a global phenomenon. Artists like PSY, who shot to international stardom in 2012 with his viral music video “Gangnam Style,” put an international spotlight on K-pop. PSY’s hit song became YouTube’s most-watched video that year. 
Since then, other K-pop acts have run up impressive numbers, too. BTS’ song “Dynamite” has exceeded 2 billion streams on Spotify. BLACKPINK’s 2023 tour became the highest-grossing by a female group on record, according to stats at the time from Touring Data.
Now, even “KPop Demon Hunters'” fictional bands are topping the global music charts.

Audrey Nuna, EJAE and Rei Ami attend the KPop Demon Hunters Special Screening at Netflix Tudum Theater on June 16, 2025 in Los Angeles, California., U.S.
Charley Gallay | Getty Images Entertainment | Getty Images

“I think people watched ‘KPop Demon Hunters’ in spite of that ‘K-pop’ in the title. And then, after watching it, they realized, ‘Oh, wow. I’m a K-pop fan,'” said Danny Chung, a K-pop producer and the voice of the film’s character, Baby Saja. “And now there’s a whole back catalogue of three decades of K-pop music that they have to dive into.”
And there’s plenty more to come: BLACKPINK is expected to release a new album. BTS is planning a comeback in 2026 after members of the band completed South Korea’s mandatory military service. 
Enthusiastic investors have pumped up the stock prices of South Korea’s “Big Four” K-pop companies. Shares of HYBE, JYP Entertainment, SM Entertainment and YG Entertainment are all up double digits year to date. YG has risen more than 100%.
The impact of the film’s rise may not stop at music.
“The breakout success of ‘KPop Demon Hunters,’ which could become one of Netflix’s most-watched content items, underscores K-content phenomenon in global market,” Mirae Asset Global Investments said in an Oct. 19 report. “We believe this cultural boom is a key catalyst driving increased international consumption of Korean cosmetics and food products such as noodles.” 
On the political front, speculation is high that China, which blocked K-pop and other South Korean cultural exports under President Xi Jinping’s campaign to promote what Beijing considers proper socialist values, could soften its restrictions.
The countries’ presidents had a positive meeting on the sidelines of the APEC summit in Gyeongju, South Korea.
“We continue to see K-pop as a direct beneficiary of thawing Korea-China relations,” Mirae said. More

The overall dollar value of commercial real estate deals has grown just 5% this year from last year as of the third quarter, according to new monthly data provided by Moody’s as a media exclusive to CNBC’s Property Play.
Trends in September reveal several themes: Flight to quality, economic uncertainty hitting the hotel sector hard, and a growing interest in two beleaguered sectors.
One glaring weakness is in the hotel sector, with deal value down 30% in September compared with the same month in 2024.

A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
Commercial real estate dealmaking is having a rough 2025, after gaining significant momentum coming out of the pandemic. Transactions are still happening, but they have stalled at well below pre-Covid levels. 

The overall dollar value of deals has grown just 5% from last year as of the third quarter, according to new monthly data provided by Moody’s as a media exclusive to CNBC’s Property Play. It tracks the top 50 CRE property sales across the U.S.
Trends in September reveal several themes: Flight to quality, economic uncertainty hitting the hotel sector hard, and a growing interest in two beleaguered sectors — office and retail.
The flight to quality can be seen in the average dollar size of sales in September, up to $12.7 million, compared with the average of $11.2 million over the two years prior. 
Of the 50 top deals closed, 29 were for over $100 million. The volume of $100 million-plus deals in the third quarter was up 35% over last year, while the volume of smaller deals has been flat or shrinking.
“We had a lot of volume growth, recovery, after the first Fed rate hikes in 2022-2023. 2024 was a pretty good year,” said Kevin Fagan, head of CRE capital market research at Moody’s. “We saw significant volume expansion, and that really has paused given all the uncertainty in 2025, albeit for large transactions, which tend to be the higher quality properties.”

Fagan noted that there is much more certainty among investors in higher quality properties, and that’s why they’re seeing money flowing in from several sources, including sovereign debt funds.
One glaring weakness is in the hotel sector, with deal value down 30% in September compared with the same month in 2024. That was the only asset class to post a significant decline last month, likely due to a drop in international and business travel. 
“A lot of companies are cutting margins, and one of the ways they do that is to have less types of certain travel,” said Fagan. “So, really feeling the avoidance of hotel assets among lenders and investors, and that’s showing up in the volume data this month.”

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While hospitality took a hit, office notched a win. 
In September, Apple spent $365 million on an office property portfolio in Sunnyvale, California. Nvidia spent $83 million on a single office building in Santa Clara, California. Meanwhile, Metlife got a roughly 39% discount deal on an office property in Newport Beach, California. 
“That’s been a pretty typical number for office, where you see sellers kind of throwing in the towel finally,” said Fagan. “Given that kind of discount, some of these companies, especially large tech companies with a lot of cash, can scoop up their own campuses and for a relatively cheap cost. So that has been a bit of a trend. We saw Microsoft do that in Seattle recently as well.”
Another big winner in September was open-air retail. Buyers including Nuveen, Tanger, InvenTrust Properties and MCB Real Estate collectively poured just under half a billion dollars into retail properties during the month, mostly open-air strip centers with restaurants. That’s a big bet on the consumer at a time when confidence is waning. 
Nuveen’s global head of real estate, Chad Phillips, told Property Play last week that he has been leaning heavily into open-air strip centers for the past two years.
“The total returns are good. You’re buying at far less than replacement cost. So you put it all together, and it’s a very resilient, essential real estate need where we can make strong, risk-adjusted returns,” said Phillips. More