Market Reports

Co-warehousing solutions are gaining traction, providing valuable alternatives for the increasing number of small businesses and users with short-term space needs. In 2023 alone, over 5.5 million new businesses were registered, marking a record-breaking trend, according to Census data.

The Federal Reserve's expected rate cuts in September and December will positively impact the real estate industry, especially for smaller builders relying on community and regional banks. Lower interest rates on Acquisition, Development & Construction (AD&C) loans will improve lending conditions, allowing builders to regain market share and increase housing supply. Multifamily developers will see long-term benefits as lower financing costs stabilize apartment construction, despite current high inventory levels.

The US lab and R&D real estate sector is facing its first significant downturn in over a decade. After ten years of consistent positive net absorption, the demand for lab space has hit a 10-year low, driven by speculative construction, increased sublease activity, and a slowdown in leasing velocity.

The coworking industry is expanding rapidly, fueled by the rise of hybrid work models and the increasing demand for flexible office spaces. With over 7,000 locations in the U.S. and 7% growth in the last quarter, coworking has evolved from a niche concept to a mainstream solution for businesses and individuals. Success in this sector goes beyond providing workspace—it requires strategic location selection, strong brand experiences, and a hospitality-driven approach to customer service.

In Summer 2024, the RV and boat storage market is navigating a period of adjustment following a surge in new supply in 2023. While demand has softened, advertised rental prices have increased modestly since February, with the sector performing better than traditional self-storage, where rates declined by 4.9% in June.

Compared to long-term levels, multifamily rent growth remains moderate overall, yet the market exhibits strength in several areas. Up to July, advertised rentals increased by a modest 0.8% year-over-year, continuing a growth trend through the start of the summer.

The US port industrial real estate markets, particularly in regions like the Inland Empire and Seattle, are experiencing notable shifts. Despite maintaining healthy container volumes, these markets are witnessing cooling demand, increased vacancy rates, and sluggish or declining rent growth.

The construction industry, long plagued by volatile costs and unpredictable market conditions, appears to be entering a phase of relative stability in 2024. In the second quarter, construction costs in the United States showed a moderate increase of 1.12% over the previous quarter.

The office market is projected to experience negative absorption through 2025, with a gradual improvement expected by late 2024. The first quarter of 2024 recorded a negative net absorption of 13.4 million square feet.

The 2024-2025 New York State budget introduces significant changes to the real estate industry through three new programs. The "Affordable Neighborhoods for New Yorkers" program replaces the expired 421a incentive, offering tax exemptions for multifamily housing construction in cities with populations over one million, contingent on meeting wage and affordability criteria.