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Commercial real estate is at a critical juncture, shaped by shifting market conditions, evolving global trade policies, and tighter financing constraints. In this challenging environment, strategic incentives such as tax abatements, infrastructure support, workforce development grants, and targeted federal programs have become indispensable tools for companies evaluating expansion, relocation, or facility development. Across North America, tenant growth remains cautious, driven largely by tariff uncertainties and persistently high interest rates. Lee & Associates’ Q3 Industrial Market…

GDP GROWTH: Despite recent labor market weakness that has made headlines along with the government shutdown that began Oct. 1 – stalling release of the Commerce Department’s third-quarter gross domestic product readings – there are several signs that point to continued economic vigor through the end of the year. For example, the Federal Reserve Bank of Atlanta’s real-time gross domestic product growth tracker, GDPNow, is estimating that GDP in the third quarter grew 3.9%, based…

INDUSTRIAL REAL ESTATE’S NEXT POWER PLAY The industrial sector has undergone remarkable shifts in recent years. Once dominated by the rise of bulk warehouses and expansive distribution centers, today’s narrative is increasingly shaped by small-bay industrial assets. These under-the-radar properties are becoming more sought after for their sustained demand, resilient fundamentals, and compelling investment potential. While national vacancy rates for large-scale industrial properties have climbed significantly, now hovering around 7.4%, small-bay vacancy remains notably lower…

After nearly two years of elevated interest rates and shifting market conditions, commercial real estate investors find themselves at an unusual juncture. Despite clear increases in borrowing costs and economic uncertainty, cap rates remain surprisingly sticky. At the heart of this dynamic is a fundamental disconnect between sellers holding tight to earlier valuation benchmarks and buyers recalibrating for heightened risk. The result is a cautious, fragmented market—one defined less by distress than by recalibration. Nationwide,…

INDUSTRIAL OVERVIEW: MARKETS AWAIT TARIFF CLARITY Net absorption of industrial space increased in the third quarter across North America but demand was weak and failed again to keep pace with the supply of new buildings, while tenant growth remained hobbled by tariff concerns and interest rates. In the United States, following 8.1 million SF of negative absorption in the first half, third-quarter tenant growth totaled 31 million SF. That was off 41% from a year…

The Federal Reserve no longer needs to remind us that interest rates will remain higher for longer. The markets have accepted it, and commercial real estate is living it. In its latest move, the Fed delivered a modest quarter-point rate cut at its September meeting, lowering its benchmark range to 4.00% – 4.25%. The decision, widely anticipated as a risk management move to address labor market softening, signals a strategic shift, though the broader policy…

GDP GROWTH: The nation’s economy grew at a stronger-than-expected rate in the second quarter due to a drop in imports and healthy consumer spending, but there are weaknesses in business investment and home sales. The Commerce Department reported that the U.S. gross domestic product rose at a seasonally and inflation-adjusted 3% rate in the second quarter. That was a reversal from the first quarter in which the economy shrank at a 0.5% annual rate as…

INDUSTRIAL OVERVIEW: VACANCIES RISE, RENT GROWTH SLOWS Concern over the impact of tariffs has added to slowing tenant growth in logistics and manufacturing across North America. But the continued easing demand has resulted in more choices and benefits for users that have been subjected to a prolonged stretch of steep rent growth. Vacancies in the United States have risen to 7.4%, a decade-long high, while deliveries continued to outpace tenant expansion.  Net absorption fell 8.1…

In the words of Ben Franklin, “In this world nothing can be said to be certain, except death and taxes.”1   While neither can be avoided, both can be delayed and, with regard to taxes, can be minimized. In preparation for the next tax season, this report will explain how property owners, whether commercial or residential, can mitigate and reduce their tax liability by using a little-known IRS-approved accounting technique called cost segregation.    It’s…