Commercial Brokers & Property Managers NAICS 531210

Aug 18, 2025 - Most Office Occupiers Plan to Increase Space

• About two-thirds of office users plan to increase their square footage over the next three years, according to CBRE’s 2025 Americas Office Occupier Sentiment Survey. One-third of firms surveyed said they plan to reduce their office footprints over the next three years. However, company size tends to dictate the likelihood of expanding or contracting office use. In 2025, 95% of smaller firms said they planned to increase their office usage, compared to just 85% in 2024. About 60% of companies with 10,000 employees or more said they plan to reduce square footage over the next three years. Industry insiders suggest that firms seeking to reduce expenses are doing so by rightsizing their office occupancy, not by downgrading to lower-quality space.
• CBL Properties’ $178.9 million acquisition of four mid-tier malls signals a broader recovery in the mall sector beyond luxury properties, according to The Wall Street Journal. After emerging from bankruptcy and shedding 20 malls pre-pandemic, CBL is doubling down on dominant, regionally focused enclosed centers. The deal reflects renewed interest in middle-market malls, driven by limited new retail construction and rising demand for space. While high-end mall owners like Simon and Brookfield continue investing in upscale renovations, CBL is revitalizing its properties by replacing department stores and tailoring offerings to local markets. Industry leaders now see select mid-tier malls as long-term “keepers,” suggesting that the mall renaissance is not confined to luxury-focused assets. With open-air retail vacancies near historic lows, even second-tier malls are attracting expanding retailers and generating stronger returns.

• Fitch Ratings’ US CMBS delinquency rate rose by six basis points to 3.16% in July 2025 from 3.10% in June. The July rise was driven by an increase in new office and multifamily delinquencies, which outstripped increased resolution activity and new issuance. Commercial mortgage-backed securities (CMBS) are fixed-income investment products backed by mortgages on commercial properties rather than residential real estate. The delinquency rate is the percentage of commercial real estate loans that were 30 or more days past due or in foreclosure. A rising delinquency rate indicates that an increasing number of commercial property owners cannot pay the mortgages on those properties. Current and prior-month delinquency rates for July and June were: Office: 8.0% (from 7.96% in June); Retail: 3.82% (from 3.48%); Hotel: 3.41% (from 3.39%); Multifamily: 1.09% (from 0.93%); Industrial: 0.47% (from 0.65%); Mixed Use: 4.65% (from 4.40%); Self-storage: 0.14% (from 0.08%); and Other: 1.13% (from 0.99%).
• Despite surging demand and massive capital commitments for new data center construction, sales of existing data centers are dropping as investors favor new development over acquisitions, according to CBRE and reporting by Bisnow. North American data center sales dropped over 50% year-over-year in the first half of 2025. Industry watchers suggest this trend may cause investors to overlook profitable opportunities in upgrading existing facilities and acquiring fully leased assets. While hyperscale builds dominate due to low vacancy and slim acquisition margins, some data center investors see value in sub-100-megawatt assets and sale-leaseback deals, which offer faster revenue and fewer regulatory hurdles.