CommercialEdge – National Office Report, May 2025

The main theme of the report concerns the state of commercial real estate in central business districts (CBDs) and their current challenges.

Key findings include: Central business districts continue to struggle with declining listing rates and high vacancy levels. Vacancy in CBDs stands at 19.2%, which is higher than in urban and suburban submarkets. Listing rates in CBDs have significantly decreased to compensate for falling demand. The U.S. federal government has changed its policy to allow for more cost-effective office spaces outside of CBDs. New office construction in CBDs has significantly slowed. Some CBD properties are being sold at steep discounts, but there are also those that continue to perform well.