Market Reports Archives - REBusinessOnline

Kansas City Leads By Example: How to Balance Growth and Heritage in Legacy Neighborhoods

Kristin Harlow — Thu, 29 Jan 2026 13:30:00 +0000

By Graham Smith, Multistudio A national shift is underway, and it starts with how cities listen. Across the country, communities and development teams are rethinking how reinvestment happens in legacy neighborhoods shaped by deep cultural identity but burdened by decades of underinvestment. These districts often hold irreplaceable history, yet for years they were sidelined by capital markets that prioritized scale, speed and uniformity over context and continuity. Historically, redevelopment in these areas followed a familiar pattern: projects designed first and explained later. Too often, that sequence displaced cultural institutions, local businesses and social networks that gave neighborhoods their meaning. Today, rising expectations around equitable development and renewed interest in urban cores are forcing a different calculus. Community engagement is no longer a step at the end of a project. It is a strategic input that shapes outcomes, reduces risk and strengthens long-term value. Intentional reinvestment Kansas City offers a timely example of how intentional process can align with market opportunity. After years of downtown population growth, expanded transit infrastructure and rising global visibility ahead of the 2026 FIFA World Cup, long deferred reinvestment became feasible. Local leaders recognized that this momentum created an opportunity to reinvest in the historic 18th…

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Repositioning Opens the Door to New Possibilities in Inland Empire’s Industrial Market

John Nelson — Tue, 27 Jan 2026 12:40:00 +0000

— By Richard Schwartz of SRS Real Estate Partners — The Inland Empire industrial market has undergone significant recalibration over the past 24 months, moving from the “too hot” environment of 2022 and 2023 marked by record construction and rent escalation to a period of normalization. Construction-driven vacancy has pushed the market into a digestion phase, marked by softening rents, adjusting sale prices and a reset in landlord-tenant expectations. These dynamics will unlock new opportunities as we enter 2026. Limited New Development Creates Breathing Room CoStar data compiled by SRS shows that new construction peaked in 2023 with about 29.5 million square feet delivered. This was followed by 17.8 million square feet in 2024 and an expected 16 million square feet in 2025. Deliveries are projected to fall to roughly 10 million square feet in 2026, making it the lightest post-pandemic year of new supply. This delivery includes several notable projects, such as Amazon’s 2.5-million-square-foot “middle-mile” facility in Hesperia, a 650,000-square- foot storage facility in Desert Hot Springs and a 1.2-million-square-foot facility in Apple Valley that’s leased to Lecangs. This means that more than half of the Inland Empire’s 2026 construction pipeline is already pre-leased, reducing speculative exposure while accelerating the rise…

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Texas Retail Owners Lack Incentives To Sell

Taylor Williams — Tue, 20 Jan 2026 12:50:00 +0000

Editor’s note: (As of the publication of this article, Adam Gottschalk is no longer affiliated with STRIVE) By Taylor Williams The industry adage that “every deal is different” has never been an exaggeration or cop-out excuse for explaining trends and transactions — or lack thereof — in commercial real estate. It’s a simple fact that actually speaks to the nuanced, innovative and challenging structures and processes that permeate dealmaking in this business. The expression is especially applicable to investment sales and particularly convenient to invoke in times of rapidly shifting market and economic conditions. Therefore, a quasi-blanket statement that, all other factors behind held equal, Texas retail owners have minimal reason to sell right now must be evaluated in that context. As with any large sample size, there will always be multiple exceptions to the rule, and there will always be deals being brought to market as a function of an owner’s unique personal or capital situation(s). But by and large, outside of those scenarios, sources say that Texas retail owners don’t need to force things. “Unless there’s a life or a capital event — debt coming due or not wanting to add fresh equity to a deal — that…

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Occupancy Gains Reinforce Inland Empire’s Office Market Recovery

John Nelson — Tue, 20 Jan 2026 12:37:00 +0000

— By J.C. Casillas of NAI Capital — The Inland Empire office market continues to show signs of recovery, with broad-based tenant demand pushing occupancy higher and absorbing vacant direct space. While landlords are holding asking rents steady to capitalize on the improving environment, direct vacant space decreased 3.2 percent quarter over quarter and 16.4 percent year over year. Vacant sublease space fell a solid 4.5 percent quarter over quarter, though it nearly doubled year over year to 135,149 square feet at year-end. Renewed tenant activity continues to chip away at vacant space, reinforcing the recovery. In fourth-quarter 2025, net absorption — driven primarily by direct space — totaled about 557,000 square feet for the year, marking a meaningful milestone in the market’s rebound. The vacancy rate edged down 10 basis points quarter over quarter, supported by 106,095 square feet of space coming off the market. It now stands at 4.7 percent, 80 basis points lower than a year ago. Stabilization has been supported by shifting workplace strategies and evolving remote work patterns. Since the economy reopened following the pandemic, occupied office space has increased by nearly 2.1 million square feet, surpassing pre-pandemic levels. Sublease vacancy has fallen 22.5 percent…

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Demand for Trophy Buildings Sets the Tone for D.C.’s Office Market

John Nelson — Tue, 13 Jan 2026 12:48:00 +0000

Fundamental macroeconomic changes in the U.S. office market, combined with the enduring resilience of Washington, D.C., make this a unique moment for investment in the region’s office sector. Forward-thinking, data-driven analysis will uncover unprecedented opportunities. Persistent flight-to-quality trends continue to drive a polarization of the D.C. office market more severely than the national average, with trophy vacancy lower and commodity vacancy higher than the overall U.S. office market. Recent sharp federal government cutbacks have caused uncertainty throughout 2025, driving additional occupancy loss in the commodity segment of the market, while a resilient private sector shows seemingly endless demand for top-quality space. Overall, midsized and large private sector tenants in the market plan to grow by an aggregate 350,000 square feet. Expected growth will be driven by law firms, higher education institutions, business and financial services firms and trade associations, including several new-to-market tenants. As a result, standard Class A and B/C vacancy rates are hovering at historic highs of 24 percent and 26 percent, respectively, while trophy vacancy sits at a historic low of 10.2 percent. The overwhelming majority of large and mid-sized blocks of top-quality space are also encumbered. If trophy space continues to be absorbed at the same…

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Inland Empire Multifamily Fundamentals Remain Strong Despite Rates

John Nelson — Tue, 13 Jan 2026 12:34:00 +0000

— By Cray Carlson of CBRE — The Inland Empire multifamily market remains one of the premier markets to invest in across Southern California, benefiting from ample land availability and less restrictive regulations than many neighboring markets. Still, like many markets, there was a disconnect between buyers and sellers in 2024 and 2025 due to interest rates. It remains psychologically difficult for investors to sell a property with an existing 3.5 percent interest rate and complete a 1031 exchange into an asset carrying a 6 percent rate. That spread creates a meaningful mental hurdle, and has prevented many owners from disposing of their properties. That hesitation, however, has not erased opportunity. There are still great opportunities in the market, even with a 6 percent interest rate. The economic fundamentals remain strong, and cap rates have increased even amid higher interest rates. Cap rates have climbed since last year, and there are still great returns to be had. While many investors continue to struggle with the reality of higher borrowing costs, escalated interest rates are not going anywhere in the near term. In 2024, the Inland Empire recorded 74 multifamily transactions of eight units or more. As of the beginning of…

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Investor Confidence in Inland Empire Retail Remains Strong

John Nelson — Wed, 07 Jan 2026 12:28:00 +0000

— By Bill Asher of Hanley Investment Group Real Estate Advisors — The Inland Empire continues to demonstrate its resilience as one of Southern California’s most dynamic retail investment markets. In the third quarter of 2025, transaction activity accelerated, pricing held firm and cap rates compressed, underscoring investor confidence in the region’s long-term fundamentals. Even with vacancy rising and rent growth moderating, investment trends point to a market adjusting as capital continues to favor necessity-based, internet-resistant formats. According to CoStar, 73 retail properties traded in third-quarter 2025 compared to 48 in the same quarter of 2024. Average cap rates declined from 7.2 percent to 6 percent year over year, signaling stronger pricing and heightened demand. Single-tenant net lease properties led the surge, with 46 transactions in third-quarter 2025 versus 28 a year earlier. Average cap rates tightened to 5.9 percent, down from 6.8 percent in third-quarter 2024. Multi-tenant retail also showed healthy demand, with 22 properties sold in third-quarter 2025 versus 20 in third-quarter 2024, and average cap rates compressed from 7.4 percent to 6.2 percent. This momentum reflects a convergence of factors that shaped the second half of 2025. Pent-up demand and impatient capital deployed equity as many sellers…

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Has D.C.’s Industrial Sector Shifted to a Tenant’s Market?

John Nelson — Mon, 05 Jan 2026 12:50:00 +0000

As 2025 closes, data suggests that the greater metropolitan Washington, D.C., area is stable but, like most markets nationally, remains below the industrial peak values achieved post-pandemic when vacancy rates hovered below 5 percent. That is no surprise, as we may never experience another “perfect storm” scenario in our lifetimes. The overall market for industrial buildings 100,000 square feet and larger is a healthy 6.3 percent, inclusive of data centers. A significant percentage of vacancy is masked by the build-out of data centers in Northern Virginia because, removing this asset class, the vacancy increases to approximately 9.1 percent. The number increases closer to 10 percent when we focus more specifically on logistics spaces, according to data from CoStar Group. Confidence remains strong for leasing activity in larger Class A industrial buildings, but the underlying economic fundamentals, uncertainty in tariff policy and geopolitical instability could lead to a continued trend of higher vacancy rates in the future. Consumer spending underpins the economy and is increasingly dependent on wealthier households who account for the majority of spending. Low- and middle-income households have continued to be squeezed by the rising costs of food, fuel and housing, which impacts the demand for shipped, manufactured…

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Tariffs Are Moving the Needle for Manufacturing, Distribution Demand on the I-85 Industrial Corridor

John Nelson — Tue, 23 Dec 2025 12:31:00 +0000

More than seven months have passed since Liberation Day, where the Trump administration declared a sweeping package of tariffs for foreign trade partners and specific commodities, including steel and aluminum. Since the announcement in early April, there has been a boon in the amount of multibillion-dollar advanced manufacturing, life sciences, semiconductor and data center investment announcements around the country, with the markets along the I-85 Industrial Corridor being no exception. To name a few: Toyota has recently begun production at its $13.9 billion battery plant in Liberty, N.C.; Rivian broke ground on its $5 billion electric vehicle plant near Social Circle, Ga.; JetZero is planning to create 14,500 jobs for an aerospace manufacturing facility in Greensboro, N.C.; Eli Lilly is developing a $5 billion pharmaceutical manufacturing facility in the Richmond suburb of Goochland County, Va.; and Google is developing a trio of data centers in metro Richmond’s Chesterfield County. “We have incredible momentum bringing business back into the United States, which is going to drive industrial growth, particularly in the Southeast,” says Jim Anthony, CEO and founder of APG Companies. “We’re not unionized, we have lower taxes, fewer regulations and lower cost of energy, which is huge factor in site…

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D.C. Retail Remains a Great Opportunity, If You Know Where to Look

John Nelson — Mon, 22 Dec 2025 14:33:27 +0000

The Washington, D.C., commercial real estate market is intricate, shaped by broad economic trends and local dynamics. The recent federal government shutdown underscored ongoing challenges, intensifying uncertainty and slowing local transactions. Continued ambiguity around trade and tariff policies further complicates business planning, adding to the region’s cautious dealmaking environment. Anxiety affects the region’s key economic source: federal workers and contractors, who make up 40 percent of its economy. Since January 2025, federal job losses here have outpaced the national average, increasing the risk of a local slowdown. Despite the area’s wealth, ongoing job uncertainty should guide all investment and operational choices. The interplay between federal employment trends and local business activity means that investors and operators must remain vigilant, adapting strategies to respond to shifting workforce dynamics and consumer sentiment. Tale of two marketsThe D.C. retail market is split: downtown faces challenges due to office vacancies and low weekday traffic, while suburban and residential-heavy urban areas are thriving. Affluent spots in Northern Virginia and Suburban Maryland have the lowest vacancy rates thanks to stable local shoppers. These areas benefit from consistent foot traffic and resilient spending patterns, which help insulate them from broader economic volatility. From a capital markets perspective,…

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Modern Facilities Boost Growth of Indianapolis Industrial Market

Kristin Harlow — Thu, 18 Dec 2025 13:30:00 +0000

By Jeremy Woods and Gwen Rodenberger, CBRE Indianapolis industrial leasing activity in January may have started as cold as the winter temperatures, but activity has only gotten hotter, even as fall wanes into winter. Indiana at one point called itself the Crossroads of America, and the moniker holds true today. Indianapolis is strategically located in the center of the state, with four major interstates running through it. The city’s businesses also benefit because of the second-largest FedEx hub at its airport. As a result, businesses can easily ship to most of the continental U.S. within three days, minimizing outbound shipping costs. In January, occupiers requiring 1 million square feet of distribution space in Indianapolis would have six first-generation shells (equivalent of 104 football fields) to choose from. If you could live with a bit less space, roughly 900,000 to 975,000 square feet, another three options could be added to the tour (adding an additional 47 football fields). Fast forward just three quarters to today, and five of the nine “mega-bulk” warehouses, as they are aptly named, are 100 percent occupied. Even the most seasoned experts would not have predicted the speed at which these spaces would be absorbed. In these…

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Texas Economic Development Professionals Focus on Quality of Life

Taylor Williams — Tue, 16 Dec 2025 12:43:00 +0000

By Taylor Williams “Economic development is the process of improving the economic well-being and quality of life for a community or nation through strategies like job creation, infrastructure development and advancements in education and health.” That’s the first sentence of the AI-driven overview that results from a simple Google search of the term “economic development.” And admittedly, that’s a very good start. Economic development is rooted in economics, a field that embodies the study of business, industry, jobs and wealth. The Google definition also pays tribute to the behind-the-scenes infrastructural work that is required to jumpstart and sustain most business endeavors, particularly regarding commercial real estate. And lastly, it covers what which may be the most important, end-all goal of economic development work: elevated quality of life for the people who live in, work at and patronize those commercial establishments. It’s that last part of the definition that appears to represent a growing niche and focal point within the spectrum of economic development work in Texas. Quality-of-life initiatives can be manifested in an array ofcommercial settings: housing, entertainment, food-and-beverage, hospitality. And as economic development professionals embrace many different roles — ambassadors of their communities, liaisons with developers and business owners,…

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Steady Amid Constraints: The Greater New Orleans Industrial Market

John Nelson — Mon, 15 Dec 2025 12:56:00 +0000

The Greater New Orleans industrial real estate market in 2025 is characterized by steady but cautious demand, where a persistent lack of new supply continues to limit product availability and constrain tenant options despite a user base that shows signs of wanting to grow. While local prospects for business are good, tenants seem to be keeping a wary eye on national economic trends. Interest rates have increased borrowing costs, prompting tenants to delay expansions and relocations as they navigate tighter budgets. Decision making is further slowed by uncertainty surrounding potential tariffs and their possible effects on material costs that could ripple through supply chains. High insurance premiums in a region affected by hurricanes force operators to reallocate funds from growth initiatives to coverage. Construction costs remain elevated; combined with a scarcity of viable development sites, speculative builds are extremely rare, which keeps inventory tight. These headwinds, some of which should sound familiar in other markets around the country, have slowed deal velocity, though there are projects in the works that can build momentum in South Louisiana. The $1.8 billion Louisiana International Terminal (LIT) in St. Bernard Parish, a public-private partnership with Ports America and Terminal Investment Ltd., begins construction in…

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Milwaukee Industrial Market: Steady Demand, New Opportunities

Kristin Harlow — Thu, 11 Dec 2025 13:30:00 +0000

By David Hodge and Tom Nickols, NAI Pfefferle While the national headlines often focus on trends such as rising vacancies and cooling rent growth, Milwaukee and its surrounding metros are telling a different story. Here resilience defines the market, and in some cases, opportunities are emerging due to our strategic location, balanced development and supportive business climate. Rate cuts change landscape The Federal Reserve’s recent rate cuts have altered the investment landscape. For the first time in years, capital markets are starting to unlock. Lower borrowing costs are already sparking new conversations with investors who had been sitting and waiting on the sidelines. This adjustment matters. Refinancing options are improving for property owners, development projects are resurfacing after being shelved for high financing costs and capital is beginning to flow again. For occupiers, rate cuts also open doors. Lower borrowing costs for developers encourage new construction and tailored build-to-suit options. This ultimately expands the range of available facilities and results in a healthier environment where tenants can negotiate from a position of choice rather than constraint. While many national markets remain hampered by an oversupply of speculative space, Milwaukee’s pipeline positions it for long-term strength compared to its peers. Local…

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Dallas-Fort Worth’s Financial Market Drives Office Usage, Design Innovation

Taylor Williams — Tue, 09 Dec 2025 12:48:00 +0000

By Joshua Metzger, studio director, principal, Gensler The Emerging Trends in Real Estate 2026 publication jointly released by PwC and the Urban Land Institute (ULI) found that North Texas benefitted from more than 100 corporate headquarters relocations between 2018 and 2024, drawn by a business-friendly climate, robust infrastructure and a growing talent pool. The launch of the Texas Stock Exchange (TXSE), Nasdaq Texas and the reincorporation of the New York Stock Exchange’s regional office from Chicago to Dallas as NYSE Texas are further cementing the area’s status as a financial powerhouse. JPMorgan Chase, Citigroup, Charles Schwab and Fidelity are among the top employers in North Texas, while Wells Fargo recently opened a new $455 million campus in Las Colinas. All this momentum and more has made Y’all Street — the moniker used to contrast Texas’ growing market to Wall Street — the second-largest financial services market in the country, trailing only New York City. The sublease availability of office space in Dallas has dropped to 3.6 percent of total inventory, signaling strong demand and confidence in the market. The Dallas neighborhoods of Uptown and Turtle Creek are bracing for a surge in development, while suburban mixed-use projects continue to thrive.…

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New Orleans CBD Continues to Transition from Office-Centric to 24/7 Destination

John Nelson — Mon, 08 Dec 2025 12:31:00 +0000

One cannot talk about, analyze, nor understand the New Orleans Central Business District (CBD) office market without a corresponding discussion of the entire CBD, not just the office building submarket. This is especially true when we look at the evolution of the New Orleans CBD since the late 1980s, and, more specifically to this article, since Hurricane Katrina. The New Orleans CBD office market is still the largest office submarket in this region. The submarket contains approximately 10.3 million rentable square feet. The balance of our submarkets (East Metairie, West Metairie, Kenner, Elmwood, West Bank, New Orleans East and the Northshore) contain a total of 8.6 million rentable square feet. More importantly, the CBD remains home for most of New Orleans’ “corporate” tenants, virtually all the region’s major law firms and financial institutions. That is the good news. However, the CBD has been transformed over the past 30+ years — and especially for the past two decades after Hurricane Katrina — from a traditional office-centric CBD to a mixed-use downtown area. The supply of office space in the CBD has shrunk from 70 buildings and 16.5 million rentable square feet in 1991, to 50 buildings and 13.8 million rentable square…

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Richmond’s Industrial Market Is an Institutional Capital Darling

John Nelson — Thu, 04 Dec 2025 19:11:52 +0000

The Richmond industrial market has been undergoing a dramatic transformation that reads like a case study in strategic positioning and timing. Over the past decade, this “regional market” has become a U.S. powerhouse, boasting all the ingredients to attract, maintain and organically grow supply-chain focused global occupiers and institutional capital investment. Richmond’s strategic advantages include its prime location on I-95 — equidistant to both metropolitan D.C. and the Port of Virginia — attractive labor demographics, disciplined development and strong demand from Fortune 100 occupiers. Additionally, the surging data center hyperscalers and their suppliers have further catalyzed growth in the market. The result? Richmond now features one of the lowest U.S. vacancy rates, sustained year-over-year rent growth, a feeding frenzy of institutional capital routinely producing 10 to 15 bids and lender quotes per property that have fundamentally reshaped who owns, develops and finances industrial real estate in the market. From regional player to national stage Over the past decade, Richmond experienced a 68 percent increase in institutional investors and lenders, growing from 47 participants in 2015 to nearly 80 unique institutions that have invested in and loaned on Richmond industrial assets, with 50 cents of every dollar invested in Richmond coming from…

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Milwaukee Office Market Proves That Resilience Sparks Reinvention

Kristin Harlow — Thu, 04 Dec 2025 13:30:00 +0000

By Matt Hunter, Hunter Real Estate Milwaukee’s office market, like many others across the country, is in flux. Rising costs, shifting tenant demands and looming debt maturities are all testing the market’s strength. But out of that pressure comes reinvention, and Milwaukee is proving it’s up for the challenge. High-quality, well-located, amenity-rich office buildings are more important than ever. They’re essential to attracting and retaining top talent. Office buildings don’t just serve the tenants that occupy them, they grow the tax base, support local businesses, drive housing demand and help build a more vibrant and economically resilient city. One of the most defining features of Milwaukee’s current office market is what’s not happening: there’s virtually no new construction. With high interest rates, continually increasing construction costs and economic uncertainty, ground-up office development has largely stalled. This has created a limited supply of modern, Class A office space, just as tenants are placing greater emphasis on quality. That supply-demand imbalance is driving increased competition for top-tier buildings and putting upward pressure on rents in this high-end segment. Tenants want less space but better-quality space, and they’re willing to pay a premium for it. This is a significant opportunity for landlords of…

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New York City Retailers Embrace Creative Footprints Amid Tighter Vacancy

Taylor Williams — Wed, 03 Dec 2025 12:29:00 +0000

“If you can make it in New York, you can make it anywhere.” Martin Scorsese, Frank Sinatra and Jay-Z probably weren’t thinking about brick-and-mortar retail real estate when they penned and recorded the iconic song lyric, but that doesn’t make the expression any less applicable to that particular subject. The notion of merchandisers, restaurateurs and entertainment operators needing a certain and precise combination of savvy, moxie and pizzazz to succeed in New York City isn’t so much new as it is resurrected. That’s because it’s only been a few years since the asset class was left for dead. But retail resiliency is now an established and proven narrative that underpins commercial real estate investment. “Brick-and-mortar retail is truly here to stay,” proclaims Beth Rosen, executive vice president at RIPCO Real Estate. “Over the years, retailers have gotten so much more savvy and are now entering into smarter deals. There’s a lot of positive sentiment about the sector, which has seen its share of ups and downs. Rents got really out of control at one point, and if the economy wasn’t strong, retailers didn’t survive. But now, it’s really more about partnerships between tenants and landlords.” Limited Options That said, owners…

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Chicago Retail Shines in Neighborhoods, Suburbs

Abby Cox — Tue, 02 Dec 2025 13:00:00 +0000

While the health of the retail market along the Magnificent Mile continues to recover incrementally with a rebound in foot traffic following a prolonged downturn, Chicago’s neighborhoods and suburbs are bustling with leasing activity. In fact, limited retail supply in the suburbs and throughout most of the city’s neighborhoods is one of the biggest challenges facing the market, according to Michael Flinchbaugh, an associate director with Chicago-based Bradford Allen. He says the dynamic has pushed up rents, leading to more national retailers entering corridors that have historically been occupied by local stores. “Groups that are not as well capitalized are struggling to find affordable space for lease,” says Flinchbaugh. The Loop, on the other hand, is sitting at a vacancy rate around 30 percent, according to Flinchbaugh. He says the hope is that the number of office-to-residential conversions slated to occur in the next two to three years will bring retailers back to the submarket as it becomes more of a live-work community. The Loop is located south of the Chicago River, while the Magnificent Mile is situated on the city’s Near North Side. Long known for its high-end shops, hotels and restaurants, the one-mile section of Michigan Avenue referred…

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