The CRE economic update for November 13, 2025 highlights shifting trends across commercial property sectors, from resilient medical office fundamentals to softening consumer sentiment and a brightening outlook for apartment rents heading into 2026.
The latest economic update highlights shifting expectations across real estate and the broader economy as 2026 approaches. Investment themes are evolving, with capital markets showing improved activity in 2025 but mixed outlooks ahead. Niche property types such as data centers and senior housing continue moving into the mainstream, supported by demographic and technology trends. Office performance remains split, with trophy assets achieving strong rents while older properties face sustained vacancies. Employment data shows modest private-sector job gains, though layoffs are rising as companies recalibrate from pandemic-era hiring, and consumer sentiment has weakened amid concerns over finances and federal uncertainty.
In commercial real estate, medical office remains one of the strongest performers, supported by healthy fundamentals and low delinquency rates compared to traditional office. Transaction volume is improving year-over-year yet still tracks at pre-COVID levels, with large institutional trades driving much of the activity and signaling a flight to quality. Logistics activity continues to expand at a steady pace as transportation demand rises during the early holiday season. Meanwhile, apartment rents are expected to rebound in 2026, and small businesses remain cautiously optimistic despite persistent labor shortages and pricing pressures.
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