Whitepaper
Commercial Real Estate Market Report: Q4 2025
REcap: Baker Tilly's award-winning commercial real estate market report
Feb. 5, 2026 · Authored by Brent W. Maier, Allen Freeman, Kevin R. Secrist, Christopher Thenemann, Bradley Wood, Jay Ian, Vladimir Lyashchenko
Stability was the underlying theme of the final quarter of 2025 as the general U.S. economy and the commercial real estate sector avoided any major shocks and demonstrated solid growth in most areas. Increased transaction activity and ample fund raising would imply that confidence in commercial real estate continues to grow despite recent challenges, and we anticipate a robust year for transaction activity.
Key takeaways
- Multifamily housing: The national multifamily market is showing signs of steadier footing, even as it works through the final stretch of a historically large supply cycle. Demand remained solid as household formation has stabilized, renter mobility has slowed, and renewals remain a key driver of occupancy as many renters stay put in the face of high homeownership costs.
