As summer winds down and the real estate world kicks back into gear, it’s a great time to sharpen your leasing strategy. With economic uncertainty, evolving tenant expectations, and changing asset performance across sectors, smart leasing in 2025 requires more than just filling space—it demands foresight, flexibility, and a pulse on current trends.
Here’s what’s shaping the commercial leasing landscape right now—and how landlords and tenants can adapt to make smarter deals.
What’s Happening in CRE Right Now
Office: Less is More
Office vacancy remains elevated, hovering near 19% nationally. In a historic shift, we’re now demolishing or converting more office space than we’re building—marking the first supply contraction in 25+ years. Landlords are focusing on retaining quality tenants and repositioning obsolete assets through adaptive reuse.
Industrial: Strong but Stabilizing
After years of explosive growth, industrial is cooling slightly. Vacancy has ticked above 7%, and new tariffs have tempered warehouse expansion plans. That said, e-commerce and nearshoring continue to fuel long-term demand.
Retail: Resilient and Reimagined
Retail continues to defy skeptics, especially in suburban and Sun Belt markets. Lifestyle centers, restaurant-retail hybrids, and experiential concepts are driving leasing momentum. Vacancy is down, rents are holding steady, and smart landlords are capitalizing on limited new supply.
Financing & Sentiment: Proceed with Caution
CRE professionals are growing more cautious. Over 80% expect worsening conditions by year-end due to macro uncertainty and interest rate sensitivity. That means underwriting is tighter, lease terms are under a microscope, and value creation starts with NOI—not speculation.
Leasing Trends & Best Practices in 2025
1. Flexibility Isn’t Optional—It’s Expected
From short-term leases to expansion rights, tenants want agility. For landlords, offering flexibility means commanding higher rents or negotiating stronger credit requirements in return.
2. Sustainability Is Showing Up in the Fine Print
Environmental impact is becoming a standard lease item. Expect green build-outs, energy reporting, and sustainable operations clauses to become part of negotiations—especially with institutional tenants.
3. Lease Structure = Value Strategy
In today’s market, how a lease is structured can make or break the value of your property. Consider shifting gross leases to NNN or modified gross to offload controllable expenses and instantly boost NOI.
4. Expense Audits Pay Dividends
Tenants are scrutinizing pass-throughs, and landlords should too. Rebidding janitorial, landscaping, or insurance contracts can recover significant margin—without touching base rent.
5. Data-Driven Decisions Win
Whether you’re reviewing comps, measuring foot traffic, or forecasting lease roll—data is your edge. Platforms like CoStar, Placer.ai, and Revere can help align your leasing strategy with real-time market insights.
Final Takeaway: Play Offense Before Year-End
Leasing is no longer a passive game. Whether you’re renewing tenants, negotiating new leases, or considering a conversion strategy, the last quarter of the year is your window to act.
Get your building in order. Optimize what you can. And if you're unsure where to start—reach out.
Let’s finish the year strong.
Justin Langlois, CCIM is a Commercial Real Estate Advisor with Stirling Investment Advisors, specializing in investment sales and landlord strategy across the Gulf South. Contact Justin to talk leasing strategy, portfolio value, or end-of-year positioning.