US commercial real estate stayed broadly stable despite Middle East tensions. Financial-market impact remained contained, with volatility and limited repricing rather than weaker fundamentals.
Apartment fundamentals began stabilizing as development pulled back sharply. Elevated home prices and mortgage rates kept renters in place, while lower new supply supported recovery.
Single-family rentals kept strong occupancy and positive rent growth. Affordability pressures and limited entry-level homes continued supporting demand, though policy scrutiny weighed on sentiment.
Industrial remained favored despite trade uncertainty. New construction slowed from prior peaks, vacancies neared cyclical highs, and modern logistics facilities continued commanding rental premiums.
Retail performed well as limited new supply and healthy tenant demand supported strong occupancy. Necessity-based formats stayed especially attractive to institutional investors seeking defensive income.
Office stabilized
