Industrial commercial real estate investment trends
Industrial commercial real estate saw a slight uptick in investment in 2024 compared to 2023 but fundamentals are softening Net absorption, a measure of demand, in the 12 months prior to April 2025 fell 22%, and the vacancy rate rose slightly to 7.2%, according to the National Association of Realtors.
Savannah, Dallas, Phoenix, Houston, and Kansas City are experiencing the most rapid occupancy growth rates.
Retail commercial real estate investment trends
Retail properties are dimming slightly for investors, as vacancies are back on the rise after two years and rent growth slows, per the National Association of Realtors.
General retail stores, which feature drugstores and supermarkets, were responsible for 98% of net absorption in the 12 months ending in April 2025.
Vacancy rates for malls remain elevated compared to the rest of the retail sector at 8.6%.
Hotel commercial real estate investment trends
Hotels continue to show some potential for investors. Occupancy rates remain just below pre-pandemic levels at 63%, but average daily rates and revenue per room exceeded pre-pandemic performance in the 12 months ending in April, according to the National Association of Realtors.
The 12-month occupancy rate for hotels in April 2025 stood at 63.1%, a few points below the 66% rate recorded in April 2019.
What is the 12-month occupancy rate for hotels?