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mployers are reexamining post‑pandemic staffing models, and the commercial real estate market rebounded in 2025. Jody King, senior VP at CBRE, said office occupancy hit its highest level since 2020, yet the approach to hybrid work is shifting. “Companies are still working out hybrid arrangements but are making long‑term commitments as they right‑size their operations,” she explained. She added that firms are focusing on the employee experience, ensuring that perks and amenities justify on‑site work. “The flight to quality is real and will continue into next year,” King noted.

    King also highlighted that employers now seek spaces that support both collaboration and deep work. Leah Balerno, another CBRE senior VP, described the “flight to quality” in industrial and logistics as a focus on dock counts, layout, and parking. Earlier, high demand meant “take what’s available,” but now tenants aim for the most productive fit.

    Inventory has become more plentiful, but rents remain high. “Rental rates are fluid, and we expect an uptick,” King said. Third‑party logistics remains the largest tenant group, followed by food and beverage manufacturing, which demand superior facilities for utilities such as water and wastewater treatment.

    Retail proved the most resilient segment in 2025. “Retail continually reinvents itself,” King remarked. The sector’s emphasis on experiential shopping and food options is drawing consumers back to physical stores. Retailers target areas with strong demographics and mixed‑use developments to maximize foot traffic.