July 10, 2025

The NAIOP Market Monitor

The NAIOP Market Monitor provides insights into shifting market conditions and capital flows across the United States. The report’s findings can help investors and developers identify regional trends and identify markets that align with their risk and return objectives or warrant further examination.

The 2025 NAIOP Market Monitor identifies a resurgence of sales activity in office markets that likely reflects investors acting on the stabilization in overall demand for office space. It also reveals strong growth in investment activity in industrial real estate despite a slowdown in industrial leasing fundamentals across the U.S.

Notable findings include:

• Transaction volume in the largest 51 office and industrial markets grew faster than in the second-largest 51 markets for each property type over the last year, but the rate of growth since 2019 remains higher for the second-largest 51 office and industrial markets.
• Office markets in Southeastern states attracted a growing share of office transaction volume.
• Relative office transaction volume fell in several northern and inland markets in California but ticked up in the state’s southern coastal markets.
• Several industrial markets underwent large changes in volatility, and there was a notable increase in the number of industrial markets that experienced a substantial swing in volume.
• Relative volatility declined across several industrial markets in the Pacific and Mountain West and in the Southeast but rose in several Midwestern markets.
• Relative transaction volume declined across several industrial markets in the Pacific and Mountain West.