Commercial Property Managers NAICS 531312

Nov 14, 2025 - Warehouse Market Conditions Improve

• Industrial real estate is showing signs of stabilization, with climbing demand and a shrinking supply pipeline helping to ease vacancy pressures, according to Supply Chain Dive. Colliers reports Q3 net absorption increased by 20 million square feet year over year and was the strongest since Q1 2023. Companies are increasingly comfortable making long-term decisions, despite tariff-related uncertainty, according to Prologis President Dan Letter. Ecommerce and supply chain investments are driving demand as firms aim to improve service while reducing costs. Letter noted that large, well-capitalized companies are leading the way, often followed by smaller businesses. Meanwhile, Colliers reports that industrial space under construction fell to 270 million square feet in Q3, the lowest since 2018. Despite this, markets like Dallas-Fort Worth and Houston are seeing construction growth amid consistent tenant demand.
• US office vacancies dropped to 18.8% in Q3 from 19% a year earlier, marking the first year-over-year decline since the pandemic, according to CBRE and reporting by Facilities Dive. Vacancies are falling amid a drop in new construction and the conversion or demolition of older spaces. Leasing activity rose 15% over Q2 2025 and 11% year over year. However, average lease size in Q3 was down 24% from pre-pandemic levels, partly due to the prevalence of hybrid work. Small occupiers led demand, with leases between 10,000 and 20,000 square feet making up 56% of year-to-date activity. Remote-heavy markets such as Washington, DC, Boston, and Seattle saw demand surge, while traditional hubs like New York and Chicago declined. Prime buildings outperformed, with vacancy spreads widening. Average rents rose 1.7% to $32.47 per square foot, though inflation-adjusted asking rents remain at their lowest since 1988.

• Mounting real estate foreclosure and repossession activity could spur more churn in the commercial property management industry. Real estate foreclosure starts and repossessions increased in the third quarter of 2023, according to Attom's Q3 Foreclosure Market Reports. In Q3, US foreclosure starts increased 16% compared to the third quarter of 2024, and repossessions climbed 33% over the same period. Attom's CEO, Rob Barber, said, "In 2025, we've seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters. While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas." States with some of the most foreclosure filings in the third quarter included Florida, Nevada, and South Carolina.
• Arkansas-based department store company Dillard’s, with a partner, recently bought a 47-year-old mall in Longview, Texas, defying a trend of retailers unloading real estate, according to The Wall Street Journal. The move may have been a defensive one, according to a Dillard’s executive. In recent years, investors have snapped up several malls on the cheap as demand has shifted online and to discount and specialty retailers. Some new mall owners have allowed properties to fall into disrepair, and some cities have sued mall owners for not properly maintaining properties while continuing to collect rent. Smaller mall tenants often can relocate if the property isn’t cared for. However, department stores usually own the space they occupy in malls, exposing them to potential bad-faith mall owners.