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Green Street's 2025 U.S. Sector Outlook

On February 6, 2025, Green Street published its highly anticipated annual U.S. Sector Outlooks. This report is essential for investors and stakeholders in the commercial real estate sector, as it provides in-depth analyses and future predictions regarding market fundamentals and valuations across nine critical property types. These sectors include apartments, industrial, lodging, malls, offices, self-storage, senior housing, single-family rentals, and strip centers. Furthermore, the report introduces noteworthy insights into the burgeoning global data center market.

Key Findings from the 2025 Sector Outlook

Apartments

The apartment market demonstrated surprising resilience in 2024, with occupancies outperforming initial predictions. An increasing number of renters have opted for longer leases due to the extreme unaffordability of the for-sale housing market, indicating a supportive environment for apartment stability.

Industrial Sector

In the industrial realm, rental prices saw a decrease of about 3-4% in 2024. A relief period is anticipated as the market absorbs excess capacity, although growth in supply is expected to decelerate significantly.

Lodging Insights

The lodging sector is projected to experience modest growth in 2025; however, expect limitations due to the robust U.S. dollar coupled with heightened operational costs.

Malls

The health of mall fundamentals remained steadfast throughout 2024. Major retailers are increasingly pursuing brick-and-mortar expansion, especially in premium