Commercial Property Managers NAICS 531312

Feb 15, 2026 - Office Leasing Activity Improves

• US office leasing reached a post-pandemic high in Q4 2025 as return-to-office momentum, federal attendance shifts, and large corporate commitments boosted activity, according to a JLL report and Facilities Dive. About 97% of Fortune 100 employees now follow hybrid or in-office requirements, helping large transactions rise about 15% year over year. Total annual leasing volume rose 5.2% to 207 million square feet. Office construction has fallen 20% below historic lows, helping to tighten supply somewhat, although vacancies remain high at 22.2%. New York, the San Francisco Peninsula, Silicon Valley, and Phoenix led occupancy gains year over year in the fourth quarter. Premium rents are rising in high-end buildings as overall asking rents stagnate. JLL expects 2026 momentum to remain positive amid limited downsizing and record-low development.
• Older warehouses built before 2010 are losing tenants as modern logistics operations demand higher ceilings, stronger power capacity, and greater automation, prompting some owners to raise roofs to stay competitive, according to Bisnow. CoStar data shows pre-2010 buildings of 100,000 square feet or more lost 96 million square feet of occupancy in 2023, 131 million in 2024, and another 98 million in 2025. Properties built between 2000 and 2009 lost 86 million square feet of occupancy over the last three years. Ceiling heights that once averaged 30 to 32 feet now reach 36 to 40 feet, driving demand for roof raising projects that can cost $1.5 million to $3 million for a 50,000 square foot building. Firms that specialize in roof-raising report rapid growth as owners upgrade ceilings and power systems, although not all older assets justify the investment.

• Commercial real estate lending strengthened in Q4 2025 as higher origination volumes, larger average loans, and improved loan-to-value ratios lifted activity, according to CBRE. The Lending Momentum Index rose 67% year over year to 1.2, driven by a 26% jump in permanent loan financing and the strongest monthly volume since 2021. Alternative lenders accounted for 40% of non-agency closings, while banks increased originations by 73% quarter over quarter. Commercial mortgage-backed securities (CMBS) volume surged, with 2025 issuance reaching its highest level since 2007. Underwriting metrics improved as loan constants and interest rates fell, debt service coverage ratios edged up, and loan-to-value ratios increased modestly.
• Analysts expect a surge in mergers and acquisitions in 2026. This trend could significantly expand demand for commercial property management as newly combined companies seek to right-size their portfolios, merge headquarters, and redesign their workplaces, according to Bisnow. With lighter regulation, more private equity activity, and cash-rich firms, megadeals are accelerating, creating years of advisory work for CRE brokers who guide cultural integration, space planning, and asset disposition. AI is emerging as both a catalyst for acquisitions and a driver of post-merger space consolidation, prompting firms to rethink their office layouts, logistics networks, and long-term leasing strategies. Property managers face tighter timelines, with most real estate decisions needing resolution within 18 months, as well as rising market pressures in cities with high rents.