"2025 Q3 North America Market Report "

Market Overview

‍The Q3 2025 review from Lee & Associates outlines a North American commercial real estate market facing soft demand across sectors while managing elevated supply levels and economic headwinds. In the industrial segment, third-quarter net absorption in the U.S. rose but remained well below year-ago levels, and deliveries continue to swell ahead of demand. The office market showed some tenant return with 12 million SF of net absorption in the U.S., yet year-to-date absorption was still negative and vacancy hovered at 14.1%. In multifamily, U.S. demand held above 100,000 units for the seventh straight quarter but dropped ~24% year-over-year, rent growth is barely positive at 0.6% and vacancy stabilized around 8.2%. Looking ahead, many metros are expected to see shrinking supply in 2026 which may help restore balance.

‍About Lee & Associates

‍Lee & Associates is a North America-wide commercial real estate services firm, with independently owned offices across the United States and Canada. Their quarterly market report synthesizes property-type fundamentals, supply/demand dynamics and investment trends to inform institutional investors, developers and user-occupiers about current conditions and near-term outlooks. To read the full report, click here.