Property Space Markets, Led by Office & Retail, Showing Signs of Stabilization

Space market fundamentals can differ markedly across property types. Net absorption (demand) and net deliveries (supply) for the four traditional property types (retail, apartments, industrial, and office) highlight the ups and downs of the space markets and can illustrate excess net demand (net absorption less net deliveries) for each sector.

Recent data from CoStar showcase the supply and demand differences across property types. In the fourth quarter of 2025, office and retail were the sectors where demand exceeded supply. For industrial and apartments, net absorption continued to fall short of net deliveries. Signs of stabilization, however, were evident across each of the four traditional property types...