Real Estate & Construction News Roundup (2/26/25) – Uncertainty for Renters, a Record-High Hotel Project Pipeline and Hybrid Hopes for Office Leasing

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Pillsbury - Gravel2Gavel Construction & Real Estate Law

In our latest roundup, hybrid work creates hope for the office sector, Texas lawmakers ease office-to-residential conversations, service-based tenants are expected to lease more retail space, and more!

  • While demand is expected to remain strong, policy uncertainty and interest rates could pose problems in the coming year for renters. (Mary Salmonsen, Multifamily Dive)
  • As closures accelerate, service-based tenants are expected to lease more retail space in the coming year than goods-based tenants. (Nate Delesline III, Retail Dive)
  • The U.S. continues to lead for hotel project counts by country, with a record 6,378 projects in the pipeline at year-end. (Noelle Mateer, Hotel Dive)
  • The uncertainty around working from home continues to depress office occupancy, lease revenue, and lease renewal rates in commercial real estate, but hybrid work brings reason for hope. (Rebecca Stropoli, Chicago Booth Review)
  • Sentiment among the nation’s single-family homebuilders dropped to the lowest level in five months in February, largely due to concern over tariffs, which would raise their costs significantly. (Diana Olick, CNBC)
  • President Donald Trump’s proposal to implement significant tariffs on the country’s key trading partners could have ripple effects on the U.S. housing market. (Kerra Bolton, Yahoo)
  • As Texas’ major urban areas grapple with a glut of vacant offices, state lawmakers may make it easier to transform empty office and commercial space into dwellings. (Joshua Fechter, Yahoo)

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