2025 CRE Trends: The Big Shifts Shaping Commercial Real Estate’s Future

Commercial Real Estate Trends to Watch for in 2025

As we approach 2025, the commercial real estate (CRE) landscape continues to evolve amidst both challenges and opportunities. While the office sector grappled with difficulties in 2024, shifting economic conditions, the rise of experiential consumerism, and ongoing efforts to secure tenants have set the stage for notable trends in the coming year.

Here’s a look at the key developments shaping CRE in 2025:

Office Market Stabilization

The office market is expected to find its footing, with improvements anticipated by late 2025, according to CBRE. A slowdown in construction activity and growing occupier confidence could drive a 5% increase in office leasing volume. Prime office spaces—high-quality buildings in top locations—may experience reduced vacancy rates, potentially reaching pre-COVID levels of 8.2% by 2027.

Emerging Tech and Industrial Niches

Industrial properties are diversifying beyond warehouses, fueled by the demand for:

• Data centers supported by AI advancements.
• Cold storage facilities for food and pharmaceuticals.
• EV battery plants and quantum computing campuses, which promise significant economic benefits despite their challenges.

These emerging sectors are gaining traction among investors and policymakers due to their potential for far-reaching economic impact.

Retail Rent Hikes

Retail rents are poised to rise in 2025, driven by a prolonged lack of new construction. With national retail space availability falling below 5%, retailers are likely to secure longer-term leases to ensure favorable locations. This trend reflects the enduring importance of strategic retail footprints.

Life Sciences Transformation

Rapid advancements in AI and healthcare innovations, such as treatments for obesity and Type 1 diabetes, are reshaping the life sciences sector. Companies will need to:

• Reassess portfolio strategies.
• Upgrade lab facilities with flexible and advanced designs.
• Select locations that support evolving research and development needs.

Border-Centric Industrial Demand

Changes in trade policy are boosting demand for industrial properties near the U.S.-Mexico border. CBRE predicts strong growth along key north-south corridors, particularly I-29 and I-35, affecting markets such as:

• San Antonio
• Austin
• Dallas-Fort Worth
• Kansas City
• Des Moines
• Minneapolis

Workplace Acoustic Optimization

With more employees returning to the office and participating in virtual meetings, noise control has become a top priority. According to Doug West of TPG Architecture, “sophisticated sound management” is critical for creating functional office environments. Solutions include:

• Soundproof finishes.
• Taller partitions in open workspaces.
• Additional phone booths for private conversations.

A Shift Toward Collaborative Spaces

The traditional office layout is evolving. Employers are prioritizing “we” spaces over “me” spaces, fostering teamwork and casual collaboration. Expect to see:

• Collective work hubs replacing corner offices.
• Conversation pits and strategically placed conference tables for impromptu meetings.

Looking Ahead

As 2025 unfolds, CRE professionals and businesses must adapt to these dynamic trends. Whether it’s exploring emerging industrial niches, navigating the retail landscape, or reimagining office spaces, staying ahead of the curve will be essential.

For more insights on commercial real estate trends, visit the full article at Forbes.

Miya Gonzalez, Your Trusted Real Estate Professional
☎ 314-503-9740
✉ miya.gonzalez@cbrealty.com

Let’s discuss how these trends could impact your real estate goals in 2025!