Commercial real estate (CRE) trends offer valuable insights that can shape strategic decisions and unlock new opportunities for investors and developers. As the CRE landscape continues to evolve in response to economic shifts, technological advancements and societal change, regularly reviewing current trends is essential for making informed, forward-thinking investment decisions. In this blog, we’re diving into some of the top trends shaping CRE segments this year.
Office
The Office sector is gradually stabilizing amid evolving tenant expectations, hybrid work models and economic changes. One specialized subset —Medical Outpatient Buildings (MOBs)— is driving market correction with steady demand, long-term leases and strong potential for adaptive reuse.
As the healthcare industry continues to shift from hospital care to more accessible and cost-effective outpatient care, demand for MOBs has increased. Although the sector experienced falling rents and 987,000 square feet of net absorption in Q1 2025, according to research conducted by CBRE, MOBs remain a compelling investment according to CRE experts, who consider the fluctuations cyclical adjustments over structural weakness in the market. The year-over-year investment volume for MOBs still rose 5%, reaching $1.6 billion for the quarter, underscoring long-term resilience.
There is a nationwide surge in medical outpatient construction, with a pipeline of projects currently underway and many more slated to break ground in the coming years. Based on research conducted by Commercial Search, the top 10 markets with the most MOBs currently under construction are:
- Houston, TX: 931K Sq. Ft.
- Chicago, IL: 920K Sq. Ft.
- New Jersey: 898K Sq. Ft.
- Miami, FL: 841K Sq. Ft.
- Manhattan, NY: 600K Sq. Ft.
- Charlotte, NC: 462K Sq. Ft.
- San Francisco, CA: 401K Sq. Ft.
- San Diego, CA: 399K Sq. Ft.
- Orange County, CA: 333K Sq. Ft.
- Dallas, TX: 330K Sq. Ft.
The growing demand for outpatient care makes MOBs a compelling investment option, but CRE experts acknowledge that success will require investors and developers to have foresight, collaborate with key stakeholders and be nimble to respond to the healthcare industry’s evolving demands.
Retail and Mixed-Use
As traditional retail navigates the challenges of growing e-commerce and shifting consumer preferences, investors and developers are taking interest in “live-work-play” (LWP) environments in suburban areas. To support this transformation, developers are undertaking adaptive reuse and open-air retail projects that convert former big-box stores and malls into seamless and engaging environments that blend retail with residential, office, healthcare and other community services. This approach requires less capital and time than ground-up construction, while also enhancing walkability and accessibility.
LWP projects allow investors to diversify their portfolios across multiple asset classes (residential, retail, office and entertainment) and offer increased tenant exposure and higher retention. Tenants are more likely to stay in environments where they can easily benefit from walking to neighboring facilities. Increased foot traffic also contributes to stronger retail performance, which in turn supports higher rental rates and enhances overall net operating income. This dynamic can help to drive both asset stability and long-term portfolio growth.
Industrial and Logistics
The Industrial and Logistics sector is experiencing significant growth, driven by e-commerce. As we move through 2025, a few trends are reshaping the landscape, creating new opportunities for investors and developers. Two of the top trends include:
- Last-Mile Data Centers: The adoption of artificial intelligence (AI) continues to accelerate, along with services like video streaming and gaming. The increased demand for high-capacity computing infrastructure is prompting the need for data centers that are located close to end users, to minimize latency and deliver fast, reliable access to these digital services. These decentralized facilities, often referred to as last-mile data centers, are being developed near existing power grids. They generate from 20-50 megawatts, which makes them smaller than large-scale campuses that produce over 100 megawatts, yet are ideal for immediate data processing. They also help offload traffic from larger facilities and reduce the strain on long-haul networks.
With limited space and time for new construction, last-mile data centers are being deployed to repurposed buildings for faster and more sustainable development. To support the growing demand for infrastructure, some developers are turning to historic buildings, which often offer expansive layouts and are built with durable materials ideal for server rooms and cooling systems. Their locations put them closer to end users, reducing latency and enhancing speed.
However, retrofitting historic buildings has its unique challenges: balancing preservation with innovation, meeting environmental and electrical standards, and navigating local building code regulations. If historic buildings are not a viable option, other adaptive reuse opportunities, such as underperforming or vacant office, retail or warehouse properties, can help provide economic revitalization to neighborhoods while advancing technological infrastructure.
- Temperature-Controlled Warehouses: Cold storage is, once again, becoming a hot commodity in the Industrial sector due to a significant rise of e-commerce, grocery and pharmaceutical delivery. With the U.S. cold storage market projected to reach $46.47 billion this year, and grow at a 12.3% compound annual growth rate (CAGR) through 2032, some strategic investors are funneling capital in to modern cold storage warehouses that are fully-equipped with cutting-edge temperature control and energy management systems. These features are designed to meet stringent environmental, government and other requirements – offering investors faster revenue potential and aligning with sustainable investment goals.
Meanwhile, developers are expected to deliver 2.2 million square feet of speculative cold storage space this year in urban markets like New York Metro; Los Angeles, California; Chicago, Illinois; Dallas-Fort Worth, Texas; and Atlanta, Georgia, where demand for last-mile delivery is highest.
Temperature-controlled warehouses offer attractive investment potential due to their long-term lease stability and strong returns. However, their specialized construction and operational complexity can create significant entry constraints and require upfront capital. Investors and developers should conduct thorough due diligence, weighing these factors before making an investment decision. Strategic locations—particularly near major transportation hubs, metropolitan centers and distribution networks—tend to attract the highest tenant demand. Additionally, compliance with food safety regulations and environmental standards is critical to avoid costly disruptions.
Multifamily
Multifamily remains a favored asset class among CRE investors for its resilience and long-term growth potential, despite the various challenges faced. Some top trends that CRE investors and developers are putting at the forefront include:
• Smart Technology Integration: From smart thermostats, keyless entry systems and voice-controlled lighting, landlords and tenants are looking for buildings that integrate the convenience of smart technology.
• Mental wellness: Neuro-architecture —a design approach rooted in neuroscience—is emerging as a leading priority for CRE developers, shaping spaces that actively support mental and cognitive well-being. This type of design involves biophilic design that incorporates natural elements like greenery and water features; circadian lighting that mimics natural light cycles to support sleep and mood; and mindfulness zones for relaxation and meditation to reduce stress and enhance emotional well-being.
• Built-to-rent (BTR) developments: New, single-family homes or townhomes specifically built and designed for renters has turned into a favorable segment in CRE. BTR developments are owned and managed by a developer or institutional investor, and include amenities and services typically found in multifamily apartment complexes, such as fitness centers, swimming pools and clubhouses. According to the National Association of Home Builders® (NAHB), during Q1 2025, 88,000 multifamily residences started construction –83,000 of which were built-for-rent developments, representing a 94% market share.
Outlook
The year 2025 is a year of adaptation and opportunity in CRE. Whether it's transforming vacant malls into vibrant communities, reimagining office space or integrating infrastructure into historic buildings, the CRE industry is demonstrating how innovation and preservation can go hand-in-hand. Looking ahead, success will hinge on a deep understanding of shifting demand and economic hurdles. The outlook may appear complex, but with a pulse on emerging trends, the path forward can be promising.
Whether you have plans to refine your Multifamily strategy or expand into Industrial or another market segment, Old Republic Title’s National Commercial Services team is here to assist you regardless of the size or complexity of your transaction. Our nationwide network of highly experienced professionals is ready to deliver the expertise and tailored services you need. To locate an office near you, visit oldrepublictitle.com/commercial/ncs/.