SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The U.S. economy displayed unexpected strength in the third quarter of 2025, with real GDP expanding at an annualized rate of 4.3%, significantly outperforming the 3.3% consensus estimate. This growth was fueled primarily by resilient consumer spending—particularly in healthcare and recreation—and a surge in national defense outlays. However, this momentum has not fully translated to the labor market. November’s jobs report showed a stark slowdown, with only 64,000 payrolls added following an October decline of 101,000. While inflation showed positive signs by decelerating to 2.7% year-over-year in November, the unemployment rate rose to 4.6%, and business investment slowed as high borrowing costs tempered spending on structures.
Commercial property markets are currently navigating a period of varied performance across asset classes. Industrial properties remain the leader, with prices up 5.1% annually and 2025 sales volume poised for its strongest year since 2022. In contrast, the office sector is showing tentative signs of stabilization as construction starts hit historic lows and national vacancy rates moderated slightly to 18.5%. While suburban office prices rose 2.7% year-over-year, Central Business District (CBD) assets continued to lag with a 1.9% decline. Meanwhile, the residential sector faces mixed signals: existing home sales rose for the third consecutive month in November, yet apartment properties continued to see price corrections, falling 1.4% annually.
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