Market Reports Archives - REBusinessOnline

Return of the Spec: Metro Detroit’s Next Industrial Chapter

Kristin Harlow — Thu, 26 Feb 2026 13:00:00 +0000

By Ryan Brittain, Colliers Speculative construction has always carried a certain boldness in industrial real estate. Building without a tenant can either signal visionary thinking or a bold bet on future demand. In metro Detroit, that confidence was on full display during the post-COVID boom. To meet the surge in tenant demand, highly respected industrial developers raced to deliver modern distribution space across the region. At the height, preleasing was not always necessary but often occurred. Developers pushed forward on new Class A warehouses, confident that tenant requirements would catch up and, for a time, they did. Yet here we are in 2026, and speculative development is not an idea of the past. It is returning, this time with more discipline. This is not another Resurgit cineribus Detroit comeback story, but rather a thoughtful recalibration. The “Return of the Spec” reflects a market that has matured and learned, not one that has overheated. To understand it today, it helps to revisit how we arrived. As a wave of newly completed speculative projects delivered (at one point, the market saw 12 million square feet under construction), availability expanded. Shortly thereafter, the automotive industry hit an uncertain patch in late 2023. Vacancy…

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Has the Raleigh-Durham Office Market Hit Rock Bottom?

John Nelson — Mon, 23 Feb 2026 12:49:00 +0000

The Raleigh/Durham office market is not yet in full recovery mode; however, the latest data suggests something just as important: stabilization. Compared to many U.S. office markets still experiencing significant stress, Raleigh-Durham is holding its ground — and in several respects, outperforming national trends. Currently, the combined Raleigh-Durham office market totals approximately 118.7 million square feet, with Raleigh making up roughly two-thirds of the inventory and Durham the remainder. Together, they form one of the Southeast’s most dynamic and resilient office regions. Vacancy elevated, improving While higher than pre-pandemic norms, vacancy is trending better than many peer markets. Raleigh’s vacancy rate currently sits around 11.1 percent, while Durham’s vacancy rate is approximately 9.8 percent, according to research from CoStar Group. Combined, this market boasts a blended office vacancy rate of roughly 10.7 percent, well below the 14.1 percent national average. Over the past 12 months, Raleigh recorded positive net absorption of approximately 574,000 square feet, while Durham experienced negative absorption of about 480,000 square feet. Combined, the market landed near equilibrium, which sends an encouraging signal that the market is no longer sliding backward, even if growth remains uneven. The area’s post-pandemic growth is shaped by hybrid work models, changing…

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Prime Office Space in St. Louis: Scarcity and Strategy

Kristin Harlow — Thu, 19 Feb 2026 13:53:00 +0000

By Joshua Allen and David Kelpe, JLL One year ago, CBRE Research forecasted a shortage of prime office space in Heartland Real Estate Business. That prediction has proven accurate. Since the beginning of 2025, demand for top-tier office space has continued to drive leasing activity across the region. This persistent appetite for quality has pushed prime Class A availability to record lows, creating a competitive environment for tenants and landlords alike. The St. Louis office market encompasses approximately 53 million square feet of competitive space. Yet, a closer look reveals a critical challenge: 73 percent of this inventory was constructed before the 1990s. This aging supply base means that only 2.6 million square feet qualifies as truly “prime” — the newest, most desirable assets located in walkable urban areas with abundant amenities. These buildings represent the gold standard for tenants seeking modern design, energy efficiency and proximity to vibrant neighborhoods. Currently, prime Class A availability sits at a mere 5.5 percent, a stark contrast to the 25.2 percent average for non-prime Class A assets. This gap reflects a clear and ongoing preference among tenants for buildings that combine high-quality construction with strategic location. In short, companies are willing to pay…

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Strong Industrial Fundamentals, Smart Supply Fuel Momentum in the Triangle

John Nelson — Mon, 16 Feb 2026 12:56:00 +0000

The Triangle’s industrial market continues to hold strong fundamentals heading into the new year. A disciplined construction pipeline, low vacancy and high absorption fuel the market’s steady success. Disciplined constructionIndustrial developers have been incredibly disciplined when delivering new product to the Raleigh-Durham market, which has kept vacancy below 7 percent — a significantly stronger rate than peer Sun Belt markets as a result of record levels of development in recent years. With absorption rates in the Triangle averaging nearly 3 million square feet per year in the past five years, this healthy rate of delivery and absorption has propped up the region’s industrial market. That being said, the Raleigh-Durham market infill land supply has its limitations. Industrial-zoned land is difficult to find and acquisition costs are pushing $500,000 per acre in some submarkets, and rezoning is a lengthy 12-month or longer process. For these projects to be financially viable, developers have been increasing rents year-over-year to an average of over $12 per square foot across all submarkets, up from roughly $6 just five years ago. Many institutional occupiers have been willing to pay a premium to be in new, Class A space in these infill areas, but other occupiers are…

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Why Data Centers Are Emerging as a Defining Opportunity for the St. Louis Region

Kristin Harlow — Thu, 12 Feb 2026 13:51:00 +0000

By David Steinbach, JLL As artificial intelligence (AI) acceleration, cloud expansion and high-performance computing reshape the digital economy, cities across the U.S. are reevaluating whether they can meaningfully compete for data center investment. St. Louis is increasingly part of that national conversation — and the reasons are structural, not speculative. With competitive power pricing, repurposable industrial infrastructure, developable land and a strengthening policy framework, the region is positioned to capture the next wave of large-scale digital infrastructure. This moment represents more than a real estate opportunity. It’s an inflection point that could redefine the region’s industrial future if public and private stakeholders act in alignment. Cost, infrastructure profile Data center site selection begins with power and connectivity, and St. Louis offers meaningful advantages on both. Missouri’s industrial electricity rates continue to trend below the national average, with the state at 7.69 cents per kilowatt-hour compared with the U.S. industrial average of 8.65 cents per kilowatt-hour, according to the latest EIA data. This is a significant differentiator for large-scale campuses with substantial, long-duration energy needs. The region’s legacy industrial and former generation sites also come with high capacity transmission infrastructure that can be repurposed, reducing both development timelines and the cost…

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Survey: Texas Fundamentals Bolster Optimism for 2026

Taylor Williams — Tue, 10 Feb 2026 12:47:00 +0000

By Taylor Williams The results of Texas Real Estate Business’ annual reader forecast survey are in, and they paint a somewhat surprising picture of an optimistic business outlook for the new year. Why surprising? Well, geopolitically speaking, 2026 has already picked up right where 2025 left off. The Trump administration’s capture of Venezuelan president Nicolas Maduro and his wife in early January touched off a fresh source of geopolitical angst. The administration then subsequently ratcheted up its preexisting talk about Greenland becoming part of the United States, including issuing a threat to impose more tariffs on European countries that opposed that plan. Editor’s note: In mid-November, Texas Real Estate Business sent email invitations to participate in the annual online survey to three separate groups — brokers; developers, owners and managers; and lenders and financial intermediaries. The survey was held open through mid-December. Invitations to participate were also included in the Texas Real Estate Business e-newsletter, as well as through ReBusinessOnline.com. The tariff threat has since been walked back, but it’s hardly an understatement to say that the first month of 2026 has been rocky in terms of geopolitics. And when that happens, it’s anyone’s guess as to just how rattled markets…

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Supply Drought: Why Triangle’s Multifamily Market Is About to Turn the Corner

John Nelson — Mon, 09 Feb 2026 12:23:00 +0000

After nearly three years of wrestling with oversupply, Raleigh-Durham’s multifamily market stands at an inflection point that informed investors have been quietly anticipating. The numbers tell a compelling story: construction starts plummeted from around 15,000 units in 2022 to roughly 2,000 in 2024, a staggering 86 percent decline that’s creating the supply drought the market desperately needed. The timing couldn’t be more critical. With an 18-month construction timeline followed by 12 to 16 months of lease-up process, the wave of deliveries from those record 2022 starts peaked in early-to-mid-2025. What comes next is perhaps the most interesting chapter in the Triangle’s multifamily story since our record rent jumps of 2021. Mathematics of recovery The construction cycle’s predictable timeline creates a unique visibility into market dynamics that astute capital allocators are already pricing in. The minimal 2024 starts are translating directly into minimal deliveries stretching from late 2025 through 2028 and beyond, which is essentially a three-year window of supply constraint that stands in stark contrast to the flood of new inventory and increased concessions that plagued 2023 to 2025. Meanwhile, demand fundamentals remain exceptionally strong. Gross absorption hit approximately 11,000 units in 2024 and is tracking toward another 10,000 (estimated)…

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Port Authorities Advance the Southeast’s Industrial Sector With Infrastructural Investments

John Nelson — Fri, 06 Feb 2026 12:39:00 +0000

In 2022, the Port of New Orleans (Port NOLA) announced the Louisiana International Terminal (LIT), a new $1.8 billion container terminal coming to Violet, a small city about 10 miles downriver (or south) from New Orleans in St. Bernard Parish. The project is a public-private partnership between Port NOLA and two private maritime industry leaders, Ports America and Terminal Investment Ltd., and is being funded with private capital and public funding from the State of Louisiana and federal sources. The U.S. Army Corps. of Engineers is managing LIT’s environmental review and permitting process, after which the public-private partnership will begin construction. Set for completion in 2028, the ambitious project is expected to generate 18,000 new jobs by 2050 and handle 2 million TEUs (twenty-foot equivalent units) of cargo traffic annually. “I consider it the most important project in the entire region,” says Andrew Marcus, founder of local commercial real estate services firm Agile Coast. “From an economic development perspective and from a quality-of-life perspective, it is the single-most important project for our region, period. The LIT is going to be the beachhead for getting modernized containerized cargo ships to come in, and we have the ability to have several terminals…

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Multifamily Is Needed for All Income Levels in Kansas City

Kristin Harlow — Thu, 05 Feb 2026 13:33:00 +0000

By Doug Stockman, Helix Architecture + Design Straddling two states, Kansas City is one of the country’s most distinctive real estate markets. Since 1992, our firm has designed workplace, cultural, higher education and multifamily projects of all types in the city, with specialized expertise in adaptive reuse. We see multifamily as the most active segment in 2026. Compared with other states, Missouri’s support for new housing projects is about average. Kansas is near the bottom, because the state lacks the revenue to incentivize housing. Inventory on the Kansas side is also less, with most multifamily housing located outside the city. Looking ahead, low-income housing tax credit (LIHTC) incentives will ideally accelerate Kansas City’s biggest market demand — affordable housing. The Kansas City Affordable Housing Set-Aside Ordinance presents some obstacles. To receive city subsidies, multifamily developments must have 12 or more units, 20 percent of which need to be affordable for households earning 60 percent or less of the area median income (AMI). Alternately, developers can pay $100,000 into the city’s Affordable Housing Trust Fund. Further, developers must navigate a complex process of zoning approvals and community engagement meetings that culminates with a city council hearing. If approved, developers on the Missouri…

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Raleigh-Durham’s Multifamily Market Is Normalizing Following Several Quarters of Softness

John Nelson — Mon, 02 Feb 2026 12:18:00 +0000

The Raleigh-Durham region continues to be one of the premier pockets of growth in the Southeast, thanks to robust employment opportunities and a steady pipeline of renters graduating from area schools including Duke University, University of North Carolina-Chapel Hill and North Carolina State University. Multifamily developers have been more than eager to help satiate the demand for housing in the area in recent years. According to Yardi Matrix, the Raleigh-Durham region had nearly 14,500 apartments deliver in 2024. The research platform also reported that approximately 8,600 more units came on line in the first three quarters of 2025, which represents a 4.2 percent growth rate compared to the market’s existing inventory. Like many of its peer markets in the Sun Belt, the Raleigh-Durham region is working its way through the excess supply, which is extending the lease-up period for newer properties. “For projects delivered in late 2023 into early 2024, absorption has slowed compared to historical norms,” says Lisa Narducci-Nix, director of business and property development at Drucker + Falk. Southeast Real Estate Business recently caught up with Narducci-Nix to discuss the health of the Raleigh-Durham apartment market, as well as larger operational trends. The following is an edited interview:…

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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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