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CaliforniaMarket ReportsMultifamilyWesternWestern Market Reports

San Diego Multifamily Market Remains Tight With Steady Gains in 2025

by John Nelson

— By Berkadia — San Diego’s apartment market is poised to strengthen in 2025, with demand poised to set a record and fundamentals outperforming most other major California metros. This is a welcome change from 2024, where a slower leasing environment for Class A properties led to more concessions.  The big story is demand. More than 9,900 net units are expected to be leased this year, surpassing the previous high of 9,500 in 2021. This figure will also outpace what is likely to be a record year for new deliveries, with 7,233 units slated to debut this year across the metro. By year-end, occupancy is projected to climb to 96.3 percent, up 90 basis points from 2024 and above the market’s 10-year pre-pandemic average. That puts San Diego ahead of Los Angeles, San Francisco-Oakland and San Jose on the occupancy leaderboard. Effective rent is expected to rise 3.1 percent year over year to a projected $2,868, marking a solid improvement from last year’s flat performance.   Fundamentals Point to a Solid Year  Employment growth remains a tailwind. The metro added 16,200 new jobs between May 2024 and May 2025, pushing total employment to nearly 1.6 million. That economic momentum is supporting …

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Fairview
Market ReportsTexasTexas Market Reports

How Two North Texas Cities Are Redefining Economic Development Strategy

by Taylor Williams

By Jane Witowich, business operations manager, Day One Experts In Collin County, two fast-growing Texas cities are charting a new path for economic development that prioritizes efficiency, adaptability and smart decision-making over traditional staffing models. Fairview and Melissa, a pair of suburban communities facing explosive population growth and mounting development pressure, have adopted a fractional approach to economic development. Instead of creating or adopting full-time, in-house departments, both cities have strategically partnered with outside expertise to stay visible in national site selection circles, foster new investment and keep costs in check. That decision, born out of necessity, is quickly proving to be a blueprint for others. A Model Rooted in Strategy The challenges faced by these teams in Fairview and Melissa are familiar to city leaders across Texas: developer interest is growing, expectations from residents are rising and yet budgets remain constrained. Hiring full-time economic development staff, building marketing infrastructure and funding national outreach campaigns — these initiatives often stretch beyond what smaller cities can reasonably afford. Rather than let those constraints define them, Fairview and Melissa made the deliberate choice to adopt a fractional model. Through partnerships with experienced consultants such as Day One Experts, led by veteran economic …

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FloridaMarket ReportsRestaurantRetailSoutheastSoutheast Market Reports

Florida’s Retail Evolution Is Paying Off

by John Nelson

When asked what makes Florida appealing from a retail perspective, Steven Miskew, CEO of Southeast Centers, put it succinctly: “The good macro-economic drivers are here: population growth, lack of supply and low vacancy, all in a pro-business environment,” he said.  As Miskew asserts, Florida’s population continues to swell as approximately 1,755 people move into the state daily, according to 2023 data from online self-storage platform StorageCafe.  Additionally, U-Haul has ranked Florida as a top four growth state in its annual growth index — which analyzes the destinations for one-way moves across its fleet — every year since 2015. Seven Florida cities ranked in U-Haul’s top 25 growth metros in 2024. Florida’s growing population underpins the success of its retail sector as more rooftops directly correlates to more demand for corresponding services, including grocery, food-and-beverage, health and wellness and soft goods.  Phil Kirkpatrick, business recruitment and property development at the City of Clearwater’s economic development and housing department, says that the Tampa Bay-area city is seeing very strong retail occupancy levels. “Vacancy is quite low as of the end of 2024, sitting at 5.4 percent,” says Kirkpatrick, acknowledging that the rate exceeds the vacancy rate of the overall Tampa Bay metro …

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Porter-Square-Galleria
Market ReportsMassachusettsNortheastNortheast Market ReportsRetail

Tenants, Landlords Feel Equal Sting of Barriers to Entry in Boston Retail Market

by Taylor Williams

You can be a best-in-class operator with the coolest concept on the block, or you can be a well-capitalized landlord who knows all the right people, but if rapid, sustainable growth in the Boston retail market is what you seek, you might be SOL.  According to local brokers, the high-demand, low-supply dynamic that currently exists in most major U.S. retail markets does not fully encapsulate the difficulties that tenants and landlords alike face in growing their footprints in the greater Boston area. As to why growing store counts or portfolios is so challenging in this market, the answer varies depending on who you ask. But a collective recap of all wide-ranging barriers to entry and disruptive forces at play paints a picture of a market that is borderline impenetrable for many tenants and perpetually stagnating for many landlords.  “Boston remains an incredibly high-barrier-to-entry market,” says Zach Nitsche, director of retail capital markets in JLL’s Boston office. “A statistic we like to share with clients and industry people that haven’t historically invested in Boston and New England is that less than 5 percent of our total retail product has been constructed after the Global Financial Crisis. So far this year, the …

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CaliforniaMarket ReportsRestaurantRetailWesternWestern Market Reports

Retail Holds Strong in San Diego

by John Nelson

— By Bryan Cunningham of JLL —  The retail sector continues to be a bright spot for commercial real estate in San Diego County. Despite financial headwinds that include interest rates, construction costs and increases in operating costs like labor and insurance, the resiliency of the consumer has allowed retailers and restaurants to continue to generate substantial sales volumes. Both national and regional retail and restaurant tenants continue to expand, although more cautiously than in years past. Retail vacancy rates in San Diego continue to hover around 5 percent, with the more desirable coastal communities closer to 3 percent. The lack of new development due to geographical constraints, as well as interest rates and construction costs, is driving expanding tenants to look purely at second-generation retail centers. While the retail tenant pool is somewhat shallow due to bankruptcies by Bed Bath & Beyond, 99 Cents Only, Party City, JoAnn Stores and the like, the lack of new product is keeping well-positioned shopping centers in high demand. Most grocery- and big box-anchored shopping centers are enjoying rents at record levels with very little vacancy. Retail centers continue to be at the forefront of interest from investors as well. While interest rates …

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Cannon-Beach-McKinney
Market ReportsTexasTexas Market Reports

North Texas Cultivates Unique Growth Story

by Taylor Williams

By Taylor Williams In 2016, the Dallas Cowboys went 13-3, finished in first place in the NFC and had five players earn All-Pro selections — arguably the team’s best season-long performance since its heyday in the 1990s.  That’s about all the reminiscing that this writer, who hails from Atlanta, cares to do on the 2016 NFL season. But is it purely coincidental that one of the Cowboys’ most dominant regular-season campaigns in the past three decades coincided with the opening of The Star, the team’s world headquarters and practice facility in Frisco? Perhaps. But for the North Texas region as a whole, the planting of the Cowboys flag outside of city limits marked a sort of coming-out party, a bold declaration that the areas north of the metroplex were primed for major job and population growth, as well as corresponding real estate development.  “When Frisco secured the Dallas Cowboys’ headquarters and The Star District in 2016, it seems to have led to a waterfall of momentum,” says Gloria Salinas, senior vice president and chief growth officer of the Frisco Economic Development Corp. “During that time, Frisco demonstrated an ability to align civic leadership with business priorities, accelerating timelines for that …

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IndustrialMarket ReportsMississippiSoutheastSoutheast Market ReportsTennessee

Memphis: A World-Class Logistics Hub Positioned for Future Growth

by John Nelson

The Memphis industrial market stands at a pivotal juncture in mid-2025, navigating temporary headwinds while maintaining the fundamental strengths that have established it as one of the Southeast’s premier logistics hubs. Despite recent challenges from global trade uncertainties and tariff negotiations impacting project timelines, the market’s long-term outlook remains positive with a foundation built on unparalleled logistics infrastructure and strategic advantages. Global logistics advantage  Memphis stands as the ultimate global logistics hub, with unrivaled multimodal infrastructure creating competitive advantages few markets can match. The “FedEx effect” remains one of Memphis’ most significant economic drivers. This powerful multiplier — named for the company’s massive impact on the regional economy — has transformed Memphis into a critical node in global supply chains. With its World Hub at Memphis International Airport, FedEx connects businesses to hundreds of countries across multiple continents, processing millions of shipments while employing thousands across the region. Recent initiatives, including Network 2.0, One FedEx and the new Automated Sorting Facility at the World Hub, represent strategic investments in efficiency and integration that are likely to boost the Memphis industrial real estate market. Additionally, Memphis International Airport ranks among the busiest cargo airports in the Western Hemisphere and the second …

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IndustrialMarket ReportsMidwestMidwest Market ReportsOhio

Cincinnati Industrial Sector Sees Resilient Fundamentals Amid Short-Term Headwinds

by Kristin Harlow

By Andrew Jacob, Colliers The Cincinnati/Northern Kentucky industrial market demonstrated notable resilience in the second quarter of 2025, balancing strong long-term fundamentals with cautious short-term sentiment. Amid national headlines of slowing industrial demand and heightened uncertainty, the region continues to distinguish itself with a combination of strategic location, steady demand and disciplined development. Market fundamentals At the close of the second quarter, the market’s total inventory stood at approximately 293.6 million square feet, supported by a healthy vacancy rate of 5.2 percent, which remains below the national average of 7.1 percent. Bulk warehouse asking rates have remained relatively steady at $5.95 per square foot, reflecting a market rebalancing after several years of oversupply from robust development activity.  In contrast, flex space asking rates continue to climb, now averaging $8.11 per square foot. This upward pressure is fueled by a scarcity of new supply — driven by land constraints and elevated construction costs. The market recorded 539,000 square feet of positive net absorption in the second quarter, bringing the year-to-date total to over 1 million square feet. This consistent absorption highlights enduring occupier demand despite broader caution in the national market. New construction activity continued at a measured pace, with 2 …

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ArizonaMarket ReportsMultifamilyWesternWestern Market Reports

Phoenix Multifamily Market: Resilient Demand, Shifting Dynamics

by John Nelson

— By Brett Meinzer of MMG Real Estate Advisors — Despite ongoing challenges, Phoenix’s multifamily market is showing signs of stabilization and strength in key areas. Record Demand, Even in a Cooling Market In first-quarter 2025, net absorption reached 5,149 units, more than double the 10-year quarterly average and the second-highest quarterly total on record. On a 12-month basis, the market absorbed 18,413 units, setting a new high. “We’re seeing demand return to peak levels,” said Brett Meinzer, advisor at MMG Real Estate. “The number of units leased in the last year shows Phoenix’s long-term story remains intact.” Supply Is Slowing, Signaling Potential Stabilization While new supply remains elevated, the pace is shifting. First-quarter deliveries declined 36 percent from the prior quarter, and the development pipeline is now nearly 50 percent below its recent peak. “After years of heavy deliveries, the pipeline is thinning,” Meinzer said. “This pullback could help stabilize rent and occupancy rates as we head into 2025.” Rent Trends Still Negative But Improving Phoenix’s effective rent currently stands at $1,560, down 2.3 percent year over year, with average occupancy at 91.9 percent. Rent softness is largely driven by concessions and intense lease-up competition from new construction. However, …

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FloridaMarket ReportsMultifamilySoutheastSoutheast Market Reports

Strong Job, Population Growth Fuel Orlando’s Dynamic Multifamily Landscape

by John Nelson

Orlando is one of the country’s most active residential markets today — a modern-day “boomtown” experiencing rapid growth on multiple fronts. Economic expansion, population gains and infrastructure investments are fueling job creation and housing demand.  Multifamily developers have responded with an unprecedented range of new affordable, middle-market and luxury housing options. Young professionals, retirees, urbanites, suburbanites, digital nomads and long-term residents can each find something to suit their lifestyles and budgets thanks to a diverse mix of residential settings and price points across the Central Florida region.  Economic drivers Orlando has attracted more people and created more jobs than any other U.S. metro over the past year. In 2024, Orlando led the nation in job growth, adding more than 37,500 jobs, according to the Florida Department of Commerce. Major projects, such as Universal Studios’ Epic Universe, Walt Disney World’s expansion, the Lake Nona Town Center build-out and Westcourt (the Orlando Magic’s Sports and Entertainment District) are expected to bring another 60,900 jobs by 2027. The growing healthcare, education and tech sectors are bringing greater balance to the economy; more than 80 percent of the local workforce is employed outside of hospitality and leisure, according to the Orlando Economic Partnership. Orlando …

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