Optimistic. That’s how real estate professionals from commercial real estate firm Avison Young are feeling today, according to a recent survey from the company.
That’s the big takeaway from Avison Young’s 2025 Mid-Year Outlook, a survey of more than 250 of the firm’s real estate professionals.
A total of 96% of survey respondents said that commercial real estate market activity will remain steady or increase in 2025. These respondents also said that they are seeing growing investor interest and an uptick in leasing activity.
“We’re seeing a clear shift in momentum – confidence is returning, decisions are accelerating, and the market is beginning to turn a corner,” said Harry Klaff, Principal and U.S. President of Avison Young. “2025 is shaping up to be a year of strategic growth and renewed opportunity across commercial real estate, and Avison Young is committed to guiding our clients through this dynamic landscape with insight and agility.”
Key highlights of the Avison Young report by sector:
- Industrial: While sensitive to trade policy and inflation, industrial demand could rise if consumer spending increases; leasing activity is approaching pre-pandemic averages.
- Data centers: Strong demand continues to be fueled by AI and cloud computing; record-low vacancy rates persist; power constraints are shaping development strategies, with a focus on self-generation and grid interconnection.
- Healthcare: Strong demand for outpatient facilities and medical office buildings; aging population and tech integration are driving long-term growth; some development slow-down seen due to capital constraints.
- Retail: Experiential retail is driving foot traffic; tenant mix is evolving to include more service-oriented and entertainment uses; mixed-use developments are gaining traction.
- Office: Hybrid work is reshaping space needs, leading landlords to offer creative incentives amid slower leasing velocity; flight to quality continues, with demand for Class A space.
- Multifamily: Major markets continue to see strong absorption; construction pipeline is expected to slow in 2026; rental rates are rising modestly, with upward pressure expected due to limited new supply.
- AI and tech: AI usage surged from 55% (2023) to 78% (2024), boosting efficiency and innovation; AI and adjacent tech startups are scaling fast in hubs like California and Austin, attracting talent and capital; businesses are increasingly treating AI as a core strategy.
“Our sentiment survey – reflecting insights from professionals across all sectors – shows unanimous optimism for the year ahead. This collective perspective strengthens our ability to guide clients with clarity, decisiveness, and purpose,” said Jen Rosenak, Principal of U.S. Director of Market Intelligence with Avison Young.
