T
he commercial real estate sector is bracing for significant changes in 2025 as the industry adapts to shifting economic conditions and emerging trends. While the office market struggled in 2024, many experts predict a rebound in 2025, driven by a construction slowdown and occupiers' growing desire to expand.

    CBRE forecasts a 5% increase in overall office leasing volume next year, with prime office space becoming increasingly scarce. This scarcity will lead to prime-office vacancy rates reaching pre-Covid levels of 8.2% by 2027. The demand for industrial properties is also expected to shift beyond warehouses, with cold storage facilities, EV battery plants, and quantum computing campuses gaining traction.

    In the life sciences sector, companies are re-evaluating their portfolio strategies, lab requirements, and location choices in response to AI advancements and growing attention to obesity and Type 1 diabetes. This may lead to more flexible and technologically advanced lab spaces.

    Retail rents are expected to rise due to a lack of new construction over the past few years, with retailers seeking longer-term leases on favorable locations. Meanwhile, demand for industrial buildings near or with access to the US-Mexico border is growing, driven by changes in trade policy.

    As employees return to the office, employers are prioritizing acoustic balance and sophisticated sound management to create a more productive work environment. This includes incorporating sound-proofing finishes, higher panels, and phone booths to minimize distractions.

    The trend towards "we" space is also gaining momentum, with corner offices giving way to collective work hubs and strategic placement of conversation pits and conference tables fostering team collaboration and casual client meetings.