— By Wes Hunnicutt and Matt Moore of Stream Realty Partners — Following a record-low vacancy of 1.4 percent in fourth-quarter 2022, Orange County’s industrial market has experienced a sustained period of rising vacancy and negative net absorption, driven by broader economic caution, elevated interest rates and softening demand for space. However, it also showed signs of slight improvement at the end of 2025. Vacancy stood at 6.1 percent at the end of last year, down slightly quarter over quarter from 6.2 percent, but higher than 5.5 percent 12 months ago. For context, vacancy immediately prior to the pandemic was 3.3 percent. Availability, which includes all spaces listed on the market for lease, came in at 7.5 percent at the end of last year. A defining feature of recent quarters has been low tenant demand for space, with seven consecutive quarters of negative absorption. This reflects cautious tenant behavior as businesses delay expansion decisions amid economic headwinds and higher borrowing costs. Fourth-quarter 2025 ended this streak with the market experiencing positive net absorption of 285,000 square feet. Larger distribution and logistics facilities experienced increased pressure and longer lease-up timelines, whereas smaller spaces of less than 100,000 square feet have performed …
By Andy Gutman, Farbman Group The Detroit office market has moved past the initial shock of the post-pandemic years, but the idea that all challenges are over would be premature. Looking ahead in 2026, office in Detroit would be best described as stabilizing but still highly selective, shaped by a continued flight to quality, cautious capital markets and a growing emphasis on service and tenant experience. While vacancy remains elevated compared with pre-pandemic norms, limited new construction and a clear bifurcation between high- and low-quality assets are helping prevent further deterioration. The next phase of the cycle will be defined by how effectively landlords adapt to tenant expectations and how long it takes for capital markets to allow older assets to meaningfully change hands. Detroit office in 2026 By the numbers, Detroit’s office market in 2026 shows stability without significant growth pressure. Vacancy estimates range from approximately 15.7 to 23.3 percent, depending on data source and asset class. Marcus & Millichap, for example, projects a 2026 year-end vacancy of roughly 15.7 percent, which is a modest 10-basis-point increase year-over-year. Broader datasets that include older inventory report vacancy closer to 23 percent. Asking rents have remained largely flat, with Class A …
How did The Fay hotel in Fayetteville, Ark., save $500,000 mid-construction? How are other apartment, office and mixed-use developments doing the same, across the construction cycle? Developers are increasingly turning to artificial intelligence (AI) to flip the script on the challenge of value engineering that often dumbs-down original design plans. Value engineering is almost a constant in the business: A project is designed and priced during the feasibility and entitlement stage but three, four or five years later when construction starts, prices have jumped while the budget is the same. And prices go up for many reasons, such as materials costs, labor costs or regulatory issues — even for import tariffs, as we’ve seen the past year. But maybe we’re blaming the wrong culprit in giving “value engineering” a negative connotation.Now it’s time for the procurement process to take its turn in preserving value and design. Saving despite tariffsProactive procurement led to a half-million-dollar savings for real estate investor/developer Dwellist at its Fayetteville project. Dwellist is transforming a decades-old motel near the University of Arkansas into The Fay, its first Motelier-branded property, a full adaptive-reuse. Recently, materials ordering was running into cost-overruns that risked putting the overall project over budget. …
By Taylor Williams The roller coaster ride continues. That’s more or less the joint takeaway from Northeast Real Estate Business’ annual reader forecast surveys for commercial brokers and developers/owners. For if the past 12 months have revealed anything about the economic and geopolitical factors that impact deal volume, investor sentiment and overall industry health, it’s that those dynamics are wildly unpredictable and highly subject to change. In last year’s survey, respondents across both groups expressed optimism — albeit guarded — for better business prospects in 2025. The incoming Trump administration was viewed as pro-business, and the previous year had ended with a trio of long-awaited cuts to short-term interest rates. Capital sources on both the debt and equity sides of the market envisioned a new, more prosperous chapter in 2025 as 2024 closed with subsided inflation, healthy job growth and less volatility in the 10-year Treasury yield. Editor’s note: In mid-November, Northeast 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 Northeast Real Estate Business e-newsletter, as …
As Nashville closes out 2025, the industrial market has solidified its reputation as a resilient powerhouse in the Southeast. With record investment volumes exceeding $2.2 billion and vacancy rates remaining well below national averages, the Nashville MSA continues to attract distributors, manufacturers, and data center-related businesses. This robust performance reflects a recalibration from pandemic-era highs while maintaining durable demand, setting the stage for balanced growth in 2026. Trends shaping the market Several macroeconomic trends are influencing Nashville’s industrial landscape. Nearshoring/onshoring and supply chain diversification have heightened the city’s appeal as a logistical hub. It is important to note that Nashville is strategically located within a day’s drive of over half the U.S. population. Locally, job growth has outpaced the national average, with Oxford Economics reporting a 1.1 percent increase in 2025, bolstered by gains in manufacturing, logistics and retail. Notably, Moody’s Analytics highlights transportation equipment manufacturing as a key driver, as automakers increase domestic production to mitigate tariffs. Further enhancing Nashville’s logistical capabilities, the planned expansion of air freight capacity at Nashville International Airport in 2027 is poised to solidify the region’s role in cargo throughput, supported by a robust highway network and a growing labor force. Despite broader economic …
— By Tim Donald of JLL Capital Markets — When investment capital flows into Orange County’s office market today, it’s revealing a fundamental shift that sophisticated investors can’t afford to ignore: the distinction between quality and commodity office space has never been more pronounced, and that gap is only widening. The challenge for many investors has been identifying opportunities that offer both stability and upside in an environment where traditional core assets provide minimal growth while pure value-add plays carry significant execution risk. What we’re seeing emerge in Orange County is a compelling middle ground, deals that feel core-plus but deliver value-add returns, and there’s substantial liquidity chasing these opportunities. The Tier System Reshapes Investment Strategy JLL’s national office team has developed a tiering system that divides office properties into distinct quality categories based on amenities, location and tenant appeal. In Orange County, this frame-work has revealed a market operating on fundamentally different planes. Tier I assets, representing a small fraction of the county’s inventory, are demonstrating exceptional resilience while Tier II properties continue to attract significant tenant and investor interest. This isn’t just academic categorization. The performance differential shows that investors are willing to pay premiums for assets with clear …
By Michael Poris, McIntosh Poris Architects Long defined by its industrial legacy, Detroit development currently combines ground-up construction with intelligent, innovative adaptive reuse. Brick-and-mortar manufacturing-era remnants include many buildings that originally served the automotive industry. As large-scale manufacturing relocated and Detroit’s population declined, several significant buildings were abandoned. Many are viable for second lives, ones that fulfill current commercial real estate market demands. Adaptive reuse makes sense I co-founded McIntosh Poris in 1994 to protect Detroit’s historic buildings from bulldozers and redesign them for a post-manufacturing economy. At that time, demolition was the most expedient option. To address this, we focused as much on civic networking and preservation education as architectural design. Implementation involved organizing events with public officials and the local business community to meet leaders of other cities’ successful urban-renewal programs. To make Detroit more attractive to commercial real estate investment, we lobbied for zoning changes. Most relevant, commercial and historic districts were re-evaluated to permit mixed-use redevelopment. Historic preservation became viable, often making sense both financially and culturally. Well before sustainability became a commercial real estate consideration, we educated developers on available adaptive reuse incentives such as historic tax credits. Combined with the inherent efficiencies of reuse, …
If there is one defining characteristic of the Raleigh-Durham retail market today, it is scarcity. Exceptionally low vacancy — especially in high-quality, well-located centers — has become the norm rather than the exception, fundamentally reshaping leasing dynamics, rent growth and development strategy across the region. As of third-quarter 2025, overall retail vacancy in Raleigh-Durham stood at approximately 2.4 percent, marking four consecutive years below the 3 percent threshold. Even more telling, spaces under 10,000 square feet posted vacancy closer to 1.8 percent, underscoring just how competitive conditions have become for local and regional tenants. This imbalance between demand and supply has placed landlords in a position of sustained leverage, particularly in grocery-anchored centers, strong neighborhood and lifestyle shopping centers or mixed-use environments. Low vacancy matters because it drives outcomes. Lease-ups are happening faster, concessions are increasingly rare in top trade areas and rents continue to trend upward. For tenants, especially those seeking smaller footprints, waiting to engage often means missing opportunities altogether. For owners, the market rewards proactive asset management and disciplined tenant selection. A clear example of this dynamic is Olde Raleigh Village, a grocery-anchored community shopping center that is currently 100 percent leased. With no vacancy to contend …
— By John Read of CBRE Retail Investment Properties-West — Orange County is often defined by its 42 miles of Pacific coastline, its globally recognized theme parks like Disneyland and Knott’s Berry Farm, and retail landmarks like South Coast Plaza and Fashion Island. Those assets contribute to the region’s visibility and appeal. But they are not what ultimately sustain its retail performance. The county’s strength is rooted in its scale and demographics. Encompassing nearly 800 square miles, Orange County is home to more than 3.1 million residents and one of the most diverse populations in the U.S., including the second-highest share of foreign-born residents in Southern California. The county’s strong retail fundamentals are supported by significant affluence and education. Average household income exceeds $157,000, and 46 percent of residents hold a bachelor’s degree or higher. Orange County is also home to major employers, including Disney, UC Irvine, Providence, Kaiser Permanente and Hoag, maintaining a low unemployment rate of 3.9 percent. These factors collectively make Orange County’s retail property fundamentals undeniable. The Orange County retail market ended the fourth quarter with a countywide availability rate of 3.9 percent, down 10 basis points from the previous quarter. Several submarkets were even tighter. …
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 …