SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
This month’s commercial real estate economic update shows a market sending mixed signals — inflation is cooling in some areas while labor market conditions continue to weaken. July CPI rose 0.1% for the month and 3.4% year-over-year, while core inflation eased to 2.5%. At the same time, employers shed 23,000 jobs in July and prior months were revised sharply lower, pointing to softer employment momentum heading into the fall.
For commercial real estate specifically, financing conditions are showing real improvement. Banks reported easier CRE lending standards for the second consecutive quarter, according to the Federal Reserve’s latest Senior Loan Officer Opinion Survey — a meaningful shift after several quarters of tightening. Property pricing, however, remains uneven across sectors. Suburban office values strengthened notably, while industrial, apartment, and retail prices continued to face varying degrees of pressure depending on market and asset type.
Other indicators point to a market that is still expanding, but with clear divergence across sectors. Logistics activity remained well above its historical average despite cooling from June’s four-year high, small business optimism reached its highest level since August 2025, and national multifamily rents posted modest but positive gains. Meanwhile, foreclosure activity increased on a year-over-year basis, Sun Belt single-family rental growth continued to lag other regions, and private-label CMBS issuance reached $76.7 billion through July — up 6.9% from a year earlier.
Together, this commercial real estate economic update points to improving capital availability and pockets of sector-level resilience, but also continued uncertainty around employment, financing costs, property values, and the pace of a broader CRE recovery. As always, we’ll keep tracking these trends closely so our clients can make informed decisions in a shifting landscape.
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