Market Insights

If you've been reading this column for a while, you know I usually pick one property type and dig in. This month I'm doing something different, because the more I looked at the numbers across Janesville and Beloit, the more one theme kept showing up: absorption has been strong across the board. But "strong absorption" and "tight supply" aren't the same thing, and depending on what you're looking for, the market tells a different story.

AI-driven office leasing is fueling a fragile recovery in major gateway markets like Manhattan, San Francisco and Boston, where AI firms are driving a significant share of recent demand. Coldwell Banker Commercial examines whether this surge represents a sustainable shift in commercial real estate or a concentrated, venture-backed cycle that could introduce new risk for office investors and landlords.

Rising pressure on U.S. farm operators is opening the door to new institutional investment in one of the nation’s largest and most fragmented real asset markets. As generational turnover accelerates and land values hold steady, agricultural real estate is gaining traction as a scalable, long-term play with broader implications for development.

U.S. shopping malls are entering a new phase of reinvention as experience-driven retail reshapes the sector. Driven by Gen Z foot traffic and demand for in-person engagement, leading properties are evolving into mixed-use, lifestyle destinations that blend retail, dining, entertainment, and community space. This shift highlights a growing divide across the market—while top-tier assets are adapting and attracting renewed interest, lower-tier properties continue to face headwinds.

It’s not shocking to me to see Texas at the top of the corporate investment list for multiple years in a row as their business friendly policies continue to drive investment and a strong labor pool provides the necessary bodies to keep growth churning

The sale of 837 N Parker Drive presented significant challenges from the beginning. The property consisting of warehouse, office, and storage components, had substantial deferred maintenance, including significant driveway and parking lot concerns, along with broader condition issues that complicated the transaction.

Wayne Gretzky’s line still holds: I skate to where the puck is going to be, not where it has been. That is a useful mindset as we think about the future of the former GM site. As Greg Ip noted in a recent Wall Street Journal article, “America Is Seeing a Stealth Boom in Manufacturing,” demand is helping drive new strength in sectors tied to AI, semiconductors, networking, power, and cooling equipment. That is worth keeping in mind as we think about where the next wave of demand may be headed.

Congratulations to Becky, a former teacher and owner of KidStation Daycare, on securing her new 4,418 SF space! Daycare operations come with unique regulatory and zoning challenges that can make site selection a years-long process.

Coldwell Banker Commercial McGuire Mears & Associates is pleased to announce the addition of Christian Horrigmo-Cook as its newest Sales Associate.

The narrative that the American mall is dying is being replaced by a more nuanced reality: the industry is bifurcating. While projections suggest the total number of U.S. malls will drop from 1,200 to 900 by 2028, premier "Class A" properties are actually flourishing. This divide is fueled by a brutal retail landscape that saw over 8,100 store closures in 2025 alone, forcing major brands to abandon struggling centers and consolidate their presence within high-performing, high-traffic hubs.