Real Estate & Construction News (2/26/25) – Uncertainty among Renters, a Record High Hotel Project Pipeline, and Hybrid Hopes in Office Leasing
In our latest roundup, hybrid work creates hope for the office sector, Texas lawmakers ease office-to-residential conversations, service-based tenants are expected to lease more retail space, and more!
- While demand is expected to remain strong, policy uncertainty and interest rates could pose problems in the coming year for renters. Mary Salmonsen, Multifamily Dive
- As the pace of closures increases, service-based renters are expected to lease more space for retail in the next year than goods-based renters. Nate Delesline III (Retail Dive)
- The U.S. is the leader in hotel projects by country with a record number of 6,378 projects on the way at year’s end. Noelle Mateer, Hotel Dive,
- The uncertainty surrounding working from home continues depressing office occupancy, lease revenues, and lease renewal rate in commercial real estate. However, hybrid work offers hope. (Rebecca Stropoli, Chicago Booth Review)
- Sentiment among the nation’s single-family homebuilders dropped to the lowest level in five months in February, largely due to concern over tariffs, which would raise their costs significantly. (Diana Olick, CNBC)
- President Donald Trump’s proposal to implement significant tariffs on the country’s key trading partners could have ripple effects on the U.S. housing market. (Kerra Bolton – Yahoo)
- As Texas struggles with a glut vacant offices in its major urban areas, state legislators may make it easier for empty office and commercial spaces to be converted into homes. (Joshua Fechter, Yahoo)
