🏙️ Quick Take: June 2025 Commercial Real Estate Market Insights (National Overview)
performance varied by asset class.
🏢 Office: Still in Flux
Vacancy hit 14.1%, with rent growth slowing to 0.8%.
Major markets like Boston and Chicago saw cuts; New York rebounded.
🏘️ Multifamily: Stabilizing, But Watch Oversupply
Net absorption up 19% YoY, completions down 9%.
Vacancy rose to 8.1% as new supply still outpaces demand.
Sun Belt markets (think Austin, parts of Florida) are seeing rent declines.
Midwest cities are outperforming due to tighter supply-demand balance.
🛍️ Retail: Mixed Signals
Absorption turned negative, rent growth slowed to 1.7%.
General retail is the only segment with positive absorption.
Malls and neighborhood centers are cutting inventory to reduce vacancies.
Despite weak sentiment, retail trade sales are growing, which may stabilize the sector.
🏭 Industrial: Cooling Off
Net absorption down 48% YoY, hitting a 10-year low.
Vacancy up to 7.4%, with supply outpacing demand 4:1.
Logistics remains strong; Flex space is struggling.
Rent growth is slowing, with regional disparities—LA and Inland Empire are seeing sharp declines.
🏨 Hospitality: Rebounding Profitability
Occupancy at 63.1%, still below pre-pandemic levels.
ADR up 22%, RevPAR up 17% vs. 2019.
Leisure destinations like Hawaii are outperforming; urban markets lag.
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