Real Estate: Market Pulse (April 2025)

Industrial Holds Strong, Office Stays Under Pressure, and Retail Faces New Headwinds

Seyfarth’s real estate team provides a bird's-eye view of the current state of commercial real estate throughout the country—highlighting which markets and major asset types are active, slowing down, or experiencing shifts.

Seyfarth’s Take: What to Know

✔ Opportunities: Industrial and Data Centers remain a stable bet with growing demand for infrastructure and digital capacity; Multifamily is a bright spot in strong rental markets. 
✔ Challenges: Office remains under pressure, and retail is facing headwinds in most cities. 
✔ Market Trend: Growing uncertainty around tariffs is creating new volatility for supply chains, development costs, and investment strategies.

Regional Rundown

"Interest rates and economic uncertainty are adversely impacting activity across asset classes. However, the Atlanta metro area and Georgia, in general, remain attractive for new data center projects." Kwame Benjamin, Partner

"Multifamily remains a strong play in Boston as single-family inventory stays tight and borrowing costs remain high. While office continues to soften, we’re seeing bright spots in data centers—though energy and land costs are real barriers. Retail is steady, but there’s growing concern about how economic uncertainty and potential tariffs could impact tenant stability." Catherine Burns, Partner

"Charlotte continues to show resilience across the board, with particular strength in industrial, multifamily and certain retail submarkets." Eric Sidman, Partner

"Institutional capital is approaching Chicago with discipline—not urgency. Multifamily and industrial remain reliable performers but the focus has shifted to asset quality and lease durability. For investors with patient capital and a long view, this market still offers compelling entry points.” Michael Merar, Partner and Tobi Pinsky, Partner

“The Dallas market remains resilient in most categories. It’s one of the few markets where nearly every asset class is active—and data center development is a sector to closely monitor.” Amy Simpson, Partner

"Traditionally, energy drives the Houston economy. Oil prices are down and uncertainty over interest rates, renewable energy credits, and tariffs are clouds on the horizon. For the moment, the industrial sector remains strong led by distribution facilities. Office remains the weakest sector, multifamily seems to have slowed substantially and retail remains steady for now." Peter Oxman, Partner

"Los Angeles continues to be mixed. Industrial investment may be stunted by tariffs, while demand for data centers continues to grow. Office and retail are showing signs of optimism and we may be past market bottom. Multifamily still sees solid demand and undersupply, but with persistent roadblocks to development and high rents." Tim Farahnik, Partner and Stacy Paek, Partner

"Class A office, prime retail, and luxury multifamily are holding up well in New York, while Class B office and lower-end retail continue to struggle. There is strong activity in last-mile industrial and high-demand rental markets, but every deal requires a hyper-local lens." Miles Borden, Partner and Cynthia Mitchell, Partner

"San Francisco is a market of reinvention. Clients who understand the city’s shifting AI landscape and are willing to take a long view are finding compelling entry points, particularly in underutilized urban corridors." Robin Freeman, Partner

"The multi-family sector continues to be a bright spot in the Seattle region as the legislature continues its efforts to streamline development of affordable housing." Jami Balint, Partner

"Washington, DC remains a study in contrasts. Industrial and data center activity remains strong, driven by infrastructure demand and proximity to major corridors, while office, retail and multifamily continue to face headwinds driven by government layoffs and uncertainty in the local economy. We’re working with clients to identify repositioning strategies and long-term plays amid a shifting economic environment." James O’Brien, Partner

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