Trump 2.0: The First 100 Days | United States

Demand for Space Resilient So Far Trailing Four-Quarter Net Absorption

Key Observations

• The CRE sector came into 2025 with momentum. As the table shows, demand for space was either strong or improving across most sectors. • Through Q1, despite the uncertainty, demand for space has held up. Quick recap: Office net absorption continues to be negative but is trending better and the flight to quality continues. Multifamily had another strong quarter in Q1, following the second strongest year on record in 2024. Industrial demand has clearly slowed from the staggering growth years coming out of the pandemic but remained positive in Q1. Retail’s main issue is lack of supply as this sector is 95% occupied.

2024 Q1

2024 Q2

2024 Q3

2024 Q4

2025 Q1 General Trend

Office (MSF)

-67.9

-61.3

-60.4

-50.3

-35.0

Improving

Slow (still positive)

Industrial (MSF)

891.1

876.9

896.9

881.4

851.5

Strong and accelerating

• Clearly a weaker economy will result in

Multifamily (000s)

290.0

341.7

393.0

423.3

434.1

weaker demand for space going forward, but in general, assuming a recession is avoided, the leasing fundamentals are generally expected to remain resilient.

Weakening (limited space options)

Retail (MSF)

15.9

9.5

6.5

2.0

-3.7

Source: Cushman & Wakefield Research, CoStar/Cushman & Wakefield Research

CONTENTS

CONTENTS

Cushman & Wakefield