CRE Space Demand Trends for 2Q

Written By Marc Nicholson

CRE Space Demand: Retail and Industrial Influenced by Trade Policy; Office Continues Recovery & Apartments Stay Strong ​​​

Retail and Industrial Face Headwinds

  • Retail space demand softened in 2025; trade policy and weaker economic prospects weigh on outlook

  • Industrial space demand also faces headwinds amid weaker imports and trade uncertainty

Office Space Demand Picks Up Momentum

  • National office absorption positive for 5 straight quarters

  • Office space demand gradually gaining momentum

  • Vacancy rates declined in 22 major metros – an emerging sign of recovery

Multifamily Remains a Standout Performer

  • 10 consecutive quarters of positive apartment demand

  • A record 800,000 units absorbed over the past 12 months

  • All 43 major metros posted positive absorption in Q2 2025​

Sources: Marcus & Millichap Research Services, CoStar Group, Inc., RealPage, Inc.​

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Marc Nicholson
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