Commercial Property Managers NAICS 531312

Jan 15, 2026 - Rising M&A Activity to Impact Commercial Property Market

• 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.
• An influx of industrial property that came online in the first four years of the decade continues to elevate vacancy rates and suppress rent growth, according to a December report by Yardi Matrix. Between 2020 and 2024, the US added more than 2.5 billion square feet of industrial property space. In response, new industrial construction activity slowed in 2024 and 2025. Uncertainty stemming from US trade policy has prompted firms to pause leasing decisions and reevaluate their supply chain strategies. In November 2025, the US average in-place rents for industrial space were flat compared to October but increased 5.7% year-over-year. The national industrial vacancy rate was 9.7% in November, up 10 basis points from the previous month and 220 basis points from November 2024.

• The US office market’s recovery remains uneven amid high vacancy rates and declining property values in some markets, according to The Wall Street Journal. While districts like New York’s Park Avenue and San Francisco’s South of Market show signs of strength, most markets struggle with empty space due to structural shifts from remote and hybrid work. Companies are downsizing footprints, leaving landlords, lenders, and local governments under pressure as office-related tax collections fall. Some investors remain cautious, with office property sales far below pre-pandemic levels, though conversions to housing and limited new supply are tightening prime space in select areas. With AI-driven job cuts adding uncertainty, analysts warn the slump may not mirror past cycles, raising questions about the long-term viability of traditional office demand.
• Commercial real estate remains out of favor with investors, who have been burned by falling property values, even as the Federal Reserve has repeatedly cut rates, according to The Wall Street Journal. Institutional buyers, once the backbone of the market, have reduced their allocations as returns have lagged far behind those of equities, infrastructure, and commodities. US property values remain 17% lower than their 2022 peaks, with offices and apartments hit the hardest, according to Green Street. While opportunistic firms like RXR and Blackstone are acquiring discounted assets, many investors are hesitant to invest in refurbishments. Amid the demise of cheap debt and the assumption of rising property values, income generation from property is becoming increasingly important, shifting the focus to assets such as senior housing, retail, and high-quality offices. With construction costs up more than 40% since 2020, the limited new supply could drive rent growth.