Features

The office sector showed its strongest performance since COVID in the second quarter of 2026, according to the Lee & Associates’ 2026 Q2 North America Market Report.

Lee & Associates’ Q2 Report: Office, Retail Markets Gain Momentum as Industrial, Multifamily Face Headwinds

by Sarah Daniels August 6, 2026

The Lee & Associates’ 2026 Q2 North America Market Report finds that commercial real estate fundamentals are improving, but the pace of recovery varies significantly by property type and market. Office and retail sectors are showing renewed momentum, industrial demand continues to recover unevenly amid trade uncertainty and multifamily fundamentals are stabilizing as new supply begins to moderate. Across all sectors, investors and occupiers remain highly selective in an evolving market. Sponsored: Download Lee & Associates’ 2026 Q2 North America Market Report. Industrial Overview: Recovering Demand Is Uneven Amid Trade Tensions Demand for North American industrial space in the second quarter continued to recover from slowing caused by heightened trade uncertainties that began early last year. Modest tenant expansion in the United States remains well off pre-COVID average growth. In the United States, 44.4 million square feet of net absorption in the second quarter brought the mid-year total to 77.1 million square feet, about 30 percent less than the pre-pandemic five-year average. First-half deliveries fell to 93 million square feet, which included 44.4 million square feet in the first quarter — the least in seven years. Although supply additions have moderated, the pullback in tenant demand over the past three years …

August 6, 2026

Features Office

What’s Next for the U.S. Office Market?

by Matthew Auchincloss August 4, 2026

By Matthew Auchincloss The U.S. office sector may never be going back to pre-pandemic utilization levels, but enough time has elapsed and data compiled to make the case that the asset class is stabilizing. According to data from CoStar Group, leasing activity remained steady in the second quarter of 2026, with 115 million square feet of new leases signed (renewals were not included in the data). That remains approximately 9 percent below the quarterly average from 2015 through 2019 but is far above the leasing volume from 2020 and 2021. The national vacancy rate is down 50 basis points from one year ago and 20 basis points in the past quarter, currently sitting at around 18 percent, according to CoStar. Rental rates are also up, averaging approximately $38.06 per square foot nationally — a 2.3 percent increase from last year, according to Colliers. Class A rates currently sit around $43.76 per square foot, with a sharp divide between commercial business district (CBD) rates and suburban product. CBD rates dropped 10 basis points from the first quarter, but the $52.52 per square foot price tag is still up slightly year-over year (70 basis points). Suburban rates are much lower at approximately …

August 4, 2026

Features Heartland Feature Archive

Beyond the Mirages: Finding Yield in a Normalized Real Estate Market

by Kristin Harlow July 30, 2026

By Dan Levitt, Ryan Cos. If it feels like the commercial real estate market has been running in place for the last three years, you’re not alone. There has been a sense of anticipation, and even inaction, that has defined the landscape as we waited for catalysts that have yet to materialize. Many of us have been distracted, looking for silver bullets in Federal Reserve rate cuts, anticipating a flood of distressed deals or chasing niche returns in preferred equity. However, these distractions have obscured possible opportunities. To break the stalemate and drive the next recovery, we must shift our focus from these mirages and get back to the fundamentals of traditional equity investing. The 10-year reality The most widely accepted misconception in our industry right now is that Federal Reserve rate cuts will serve as the silver bullet for commercial real estate — though expectations for rate cuts have diminished significantly lately. Over the past several years, even as short-term interest rates have come down by over 150 basis points, we’ve seen headline after headline anticipating that new reductions to the federal funds rate will compress cap rates and send valuations rising again. This notion fundamentally misinterprets how institutional …

July 30, 2026

California Content Partner Features Loans Multifamily Northeast Regions Real Estate Capital Markets Southeast Western

Resilient Demand in Key Regions Supports Multifamily Through Midyear Challenges

by Sarah Daniels July 28, 2026

By Ann Atkinson, Regions Real Estate Capital Markets Midway through 2026, the multifamily industry appears to be holding steady. By many accounts, fundamentals are weathering uncertainties across the economy, job markets and geopolitical arenas. While some key metrics have softened, the overall health of the apartments sector demonstrates how essential this class of real estate is. Simply stated, everyone needs a safe place to call home. Sustained demand for rental units remains central to the sector’s health, and conditions in the for-sale market continue to shape that demand directly. For many households, homeownership has become increasingly out of reach. Affordability has eroded sharply over the past decade, driven by land use restrictions, constrained housing supply and a widening gap between mortgage costs and income, according to an October Goldman Sachs’ U.S. outlook for housing supply and affordability. Elevated interest rates in recent years have only added to the strain. Together, these factors are keeping many Americans in rentals far longer than they might have planned. Even with strong demand, the apartments market isn’t without challenges. The industry is still working through the surge in new unit supply that hit the market over the past few years. As a result, rents …

July 28, 2026

Features Multifamily

The Middle-Income Housing Gap Is Hiding in Plain Sight: Buildings We’ve Already Built

by Taylor Williams July 23, 2026

By Danny Fishman, CEO, co-founder, GAIA Real Estate The country’s broader middle class is facing a housing crisis: a growing gap in available, high-quality rental options. High-demand markets like Miami and New York City are now appearing in headlines on two lists at once. Miami is called out as oversupplied but is also pointed to as one of the least affordable rental markets in the country. New York City has a supply shortage with population decreasing in recent years, and still rents go up. The new supply of rental units flooding Sun Belt markets are mostly in Class A buildings with full amenities. Therefore, less quality options are available to middle-income renters. Much of the industry is shying away from this gap, but it’s crucial that developers, cities and states start pushing toward it. Major institutional investors have historically chased luxury or affordable housing at the extremes, partially due to the real estate market’s — both private and public sectors — failure to foresee the widening income gap. As the economy split, households got pushed toward the higher and lower ends, while the middle thinned out. At the same time, renters and buyers were looking for apartments with nice …

July 23, 2026

Speakers at the build-to-rent panel at InterFace Carolinas Multifamily included, from left, Louis Smart of CBRE (moderator); Ed Oprindick of Mandrake; Lisa Taylor of Greystar; Eric Friedman of Crescent Communities; and Andy Lucas of Beauxwright.

Build-to-Rent Conference Coverage Development Features Multifamily Single-Family Rental

InterFace: Build-to-Rent Developers Navigate Uncertainty Stemming from ROAD to Housing Law, Picky Renters

by Matthew Auchincloss July 21, 2026

By Matthew Auchincloss CHARLOTTE, N.C. — The multifamily build-to-rent (BTR) market in the Carolinas is the most competitive it’s ever been. According to Louis Smart, senior vice president at CBRE, more than 22,000 townhomes and single-family rental (SFR) units were delivered in the Carolinas over the past three years, and developers are jostling for position to handle it. “We’re reacting as probably most of our peers are reacting: scratching and clawing through lease-up, being as creative as we can, spending money that we really don’t want to spend from a marketing and advertising perspective trying to differentiate the product as much as possible, leaning into the fact that we believe we’ve picked good locations,” adds Andy Lucas, principal at Beauxwright. Lucas was a speaker on a panel titled, “Build-to-Rent in the Carolinas: Headwinds, Tailwinds and What Comes Next?” The panel was part of the lineup at InterFace Carolinas Multifamily, an information and networking conference that took place on May 21 at the Hilton Charlotte Uptown. Smart was the panel moderator. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. Other panelists included Eric …

July 21, 2026

Features Retail

Retail Real Estate Enters New Era of Confidence, Say JLL Survey Takers

by Abby Cox July 14, 2026

CHICAGO — After years of uncertainty fueled by inflation, rising interest rates and changing consumer behavior, retail real estate has entered a notably different phase. According to JLL’s 2026 U.S. Retail Thematic Outlook and Investor Survey, the sector is no longer in recovery mode — it’s operating from a position of strength. Retail activity surged in the first quarter of the year as transaction volume hit $13.5 billion, a 5 percent year-over-year increase. Concurrently, the trailing 12-month volume climbed to $62 billion, representing a 31 percent increase over the previous period. Retail now accounts for its highest share of U.S. sector investment in a decade, sitting at 14 percent. The survey of nearly 150 retail investors paints a picture of a market supported by historically limited new supply, healthy consumer demand and renewed investor confidence. While broader economic concerns remain, the outlook suggests retail has become one of commercial real estate’s most compelling investment narratives, driven by strong fundamentals. One of the clearest indicators of that confidence is investor appetite. Nearly two-thirds (64 percent) of respondents said they expect to increase retail acquisitions in 2026, while fewer than half (48 percent) anticipate selling more assets. The imbalance between buyers and …

July 14, 2026

Build-to-Rent Features Single-Family Rental

Build-to-Rent Thrives on Renter Retention

by Taylor Williams July 7, 2026

By Taylor Williams Whether by choice or necessity, the share of Americans who rent rather than own their homes is on the rise. Compared to the counterparts in the traditional multifamily space, owners and operators of build-to-rent (BTR) properties believe that they are in some ways better positioned to capitalize on this trend. And according to some professionals who own and operate these properties, resident retention is a powerful supportive factor behind this sentiment. Ty Robinson, president at Dallas-based ONM Living, the BTR division of HistoryMaker Homes, says that the majority of his company’s residents are experienced renters who are coming from traditional apartments. Robinson has observed that while these individuals may take longer to formally sign a lease for a BTR home than they would a regular apartment, all other factors being held equal, once they’re in, they tend to stick around. “Given the price point — we typically see premiums of 10 to 30 percent relative to traditional multifamily — and the weight of the decision, it often takes those people longer to commit, but they’re not as transient,” Robinson says. “These residents are staying longer, and as experienced renters, they don’t typically need as much oversight from …

July 7, 2026

Features Multifamily Seniors Housing

University Retirement Communities Make the Grade

by Hayden Spiess July 2, 2026

By Hayden Spiess At first glance, mixing university students in their late teens and early 20s with senior living residents might seem too unconventional to succeed. “These are two completely different worlds,” concedes Andrew Carle, president of Carle Consulting. “You cannot find a bigger odd couple than bureaucratic universities focused on 20-year-olds and fast-moving senior living providers that are focused on 80-year-olds. Bringing those worlds together is hard.” Even so, the premise of university retirement communities (URCs) does exactly that, and Carle is one of the property type’s strongest proponents. More than 80 URCs are currently open throughout the U.S., according to UniversityRetirementCommunities.com, which is an online resource established and operated by Carle. The proliferation of these niche properties marks a stark contrast from a few decades ago, when the first URCs began to pop up. Those first communities included Meadowood at Indiana University, which opened in 1983, and Green Hills at Iowa State, which was built in 1986. Carle describes those two pioneering communities as “organically built” properties, rather than “intentionally built” URCs. “Most of the early ones were organically built,” explains Carle. “They didn’t even know what they were doing, frankly.” As interest in senior living communities …

July 2, 2026

Features Heartland Feature Archive Leasing Activity Retail

Competition Is Fierce for Quality Retail Spaces

by Kristin Harlow June 23, 2026

Today, there’s a multitude of factors shaping the retail leasing market. Smaller footprints, the influence of technology, changing lifestyles of younger generations, limited new supply and backfilling closures are just some of the most prominent storylines. As of the first quarter, the national retail vacancy rate held stable at 4.4 percent, up 10 basis points from the prior quarter, according to Colliers, which covers malls, shopping centers and general retail across 390 markets. “The market remains structurally tight due to limited new supply and steady backfill demand,” summarizes the brokerage firm in its first-quarter “U.S. Retail Market Statistics” report. “A clear bifurcation persists, with tight availability for small spaces and more modest availability among large anchor boxes.” In a nutshell, today’s retailers prioritize smaller, more efficient spaces with strong visibility, easy access and co-tenancy with established traffic drivers along with the flexibility to support omnichannel operations, says Ron Goldstone, executive vice president at NAI Farbman in Farmington Hills, Michigan. In the first quarter of the year, Continental Realty Corp. executed deals with tenants in the health and wellness category, service-oriented uses, food-and-beverage, children’s schools, entertainment and various franchise concepts in the 1,500- to 2,000-square-foot range, according to Kristina O’Keefe, senior …

June 23, 2026

Newer Posts

Older Posts