Nearly 100% of survey respondents express confidence in steady or increased market activity for remainder of year, signaling clear shift in momentum

Chicago, IL –Global commercial real estate advisor, Avison Young, today released its 2025 Mid-Year Outlook, revealing a wave of optimism across the U.S. commercial real estate landscape. In a survey of more than 250 Avison Young real estate professionals, 96% expressed confidence that market activity will remain steady or increase in 2025, and shared expectations of growing investor interest and an uptick in leasing activity.

“We’re seeing a clear shift in momentum – confidence is returning, decisions are accelerating, and the market is beginning to turn a corner,” said Harry Klaff, Principal and U.S. President, Avison Young. “2025 is shaping up to be a year of strategic growth and renewed opportunity across commercial real estate, and Avison Young is committed to guiding our clients through this dynamic landscape with insight and agility.”

Key highlights by sector:

• Industrial: While sensitive to trade policy and inflation, industrial demand could rise if consumer spending increases; leasing activity is approaching pre-pandemic averages.
• Data centers: Strong demand continues to be fueled by AI and cloud computing; record-low vacancy rates persist; power constraints are shaping development strategies, with a focus on self-generation and grid interconnection.
• Healthcare: Strong demand for outpatient facilities and medical office buildings; aging population and tech integration are driving long-term growth; some development slow-down seen due to capital constraints.
• Retail: Experiential retail is driving foot traffic; tenant mix is evolving to include more service-oriented and entertainment uses; mixed-use developments are gaining traction.
• Office: Hybrid work is reshaping space needs, leading landlords to offer creative incentives amid slower leasing velocity; flight to quality continues, with demand for Class A space.
• Multifamily: Major markets continue to see strong absorption; construction pipeline is expected to slow in 2026; rental rates are rising modestly, with upward pressure expected due to limited new supply.
• AI and tech: AI usage surged from 55% (2023) to 78% (2024), boosting efficiency and innovation; AI and adjacent tech startups are scaling fast in hubs like California and Austin, attracting talent and capital; businesses are increasingly treating AI as a core strategy.

"Our sentiment survey – reflecting insights from professionals across all sectors – shows unanimous optimism for the year ahead. This collective perspective strengthens our ability to guide clients with clarity, decisiveness, and purpose," said Jen Rosenak, Principal, U.S. Director of Market Intelligence.