Skyscraper

Here is a snapshot highlighting several key trends for commercial real estate (CRE) for the balance of this year.

1. Office Visits and Return-to-Office (RTO)
– Office visits are being driven largely by employees living within three miles of their workplace.
– Cities on the East Coast are leading the recovery in office building visits, suggesting a stronger RTO rate compared to other regions.

2. Shopping Centers
– Visits to shopping centers, including indoor malls, open-air shopping centers, and outlet malls, have surpassed pre-pandemic levels. Median household incomes for mall visitors have returned to pre-COVID levels after a dip in 2020-2021.

3. Population Growth
– States in the Sunbelt and Mountain regions, such as Florida, Texas, Arizona, and Colorado, are experiencing significant population growth, with suburban areas seeing the most considerable increase since 2020.

These trends provide insights into the current state of CRE and future directions, particularly in the office and retail sectors.

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