LEE & ASSOCIATES Q4 2025 MARKET REPORTS

Market Overview

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In Q4 2025, North America’s commercial real estate markets showed signs of recalibration after several years of rapid growth. Industrial demand softened under the influence of trade and tariff pressures, with U.S. net absorption declining 13 percent year-over-year to 112.5 million square feet and rent growth slowing to just 1.3 percent—the lowest pace since 2011. Development activity also moderated, with new deliveries falling to 253.6 million square feet in 2025, down 52 percent from the 2023 peak as developers scaled back projects in response to weaker tenant demand. Across asset classes, office markets in the United States showed modest improvement while Canadian markets remained weaker, retail fundamentals stayed relatively healthy, and multifamily demand cooled as rising supply kept rent growth subdued.

About Lee & Associates

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Lee & Associates is a North America-based commercial real estate brokerage and advisory firm specializing in industrial, office, retail, and multifamily properties. Through its research platform, the firm publishes national and regional market reports that analyze key trends in leasing activity, development pipelines, rent growth, and investment performance to help investors, developers, and operators understand evolving real estate fundamentals.

To read the full report, click here.

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