The commercial real estate market in the United States has entered a pivotal phase in 2025. From shifting demand in the office sector to the resurgence of physical retail and the continued strength of logistics infrastructure, asset classes are being redefined by macroeconomic and behavioral forces.
BALFIN Americas, a division of the BALFIN Group, is focused on identifying investment opportunities in high-value urban markets, including New York City, while also evaluating performance across national growth corridors.
New York City remains a global reference point for commercial real estate investment. While the city continues to recover from the disruptions of previous years, 2025 is bringing renewed stability in select sectors.
The Manhattan office market is showing gradual signs of recovery.
Vacancy rates remain high, but leasing activity has increased in Class A buildings, especially in Midtown and Hudson Yards.
Tenants are prioritizing buildings with strong ESG credentials, flexible design, and top-tier amenities.
Consumer foot traffic in areas such as SoHo, Flatiron, and Williamsburg has returned to pre-pandemic levels.
Retailers are seeking high-visibility locations with adaptable leasing structures.
Landlords are investing in renovation and adaptive reuse to meet the expectations of modern retail brands.
Several outdated commercial buildings are being repositioned as mixed-use properties, combining residential, office, and ground-floor retail.
New York City incentives are encouraging developers to convert aging stock into productive, community-oriented assets.
Beyond New York, U.S. commercial real estate in 2025 is characterized by geographical diversification, evolving asset strategies, and increased investor discipline.
The national vacancy rate for office space is approximately 19.6 percent.
Sun Belt cities such as Austin, Nashville, and Charlotte continue to attract headquarters relocations and regional office expansions.
Obsolete office buildings in urban cores are being considered for conversion or sale at discounted rates.
Brick-and-mortar retail is adapting to new consumer behaviors, focusing on experience and convenience.
Grocery-anchored centers and neighborhood shopping plazas remain resilient.
Retail space with integrated fulfillment or pickup features is seeing increased demand.
Warehousing and last-mile logistics assets remain top performers in the commercial portfolio.
Demand is concentrated near major ports including Los Angeles, Houston, and Newark.
Industrial developers are increasingly adopting automation and ESG-aligned construction standards.
Investors are targeting integrated developments that combine office, retail, residential, and lifestyle functions.
Urban nodes in Denver, Atlanta, and the Washington D.C. metro area are leading this trend.
“At BALFIN Americas, we invest in long-term transformation. Our strategy is to identify undervalued or underutilized assets and reposition them in a way that reflects the needs of tomorrow’s cities. We believe that real estate is not just about property—it’s about community value, innovation, and long-term performance. New York is a global testbed for change, and we are here to help shape that change.”
— Martin Mane, CEO, BALFIN Americas
Our goal is to build a portfolio that aligns with evolving market needs, investor expectations, and our responsibility to the communities we serve.
To discuss opportunities, partnerships, or insights related to U.S. commercial real estate investment, please contact our investment team or follow BALFIN Group updates on LinkedIn.
Balfin Americas is part of BALFIN Group, a leading investment group from Southeast Europe. We focus on strategic real estate and asset management across the Americas, creating long-term value.
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