Green Street Releases 2025 U.S. Sector Outlooks with Market Forecasts

Explore market fundamentals and valuations across 10 key property sectors

NEWPORT BEACH, Calif., Feb. 6, 2025 /PRNewswire/ -- Green Street, the leading provider of trusted commercial real estate intelligence and unbiased insights, has released its annual U.S. Sector Outlooks, providing forward-looking insights into market fundamentals and valuations across nine key property sectors: apartments, industrial, lodging, malls, office, self-storage, senior housing, single-family rentals, and strip centers. In addition to these U.S.-focused reports, Green Street has released its second-annual report covering the global data center market.

According to Seth Laughlin, Managing Director of U.S. Market Analytics at Green Street, "Our outlooks showcase a deep dive into the key drivers of each property type, along with forecasts and actionable investment conclusions by market. These annual reports, plus the trove of research and data on our platform, can serve as a key foundation for clients evaluating opportunities."  

Highlights from this year's U.S. Sector Outlook reports include:

• Apartment, fundamentals held up better than expected in 2024. More renters are staying longer, due to the prohibitively expensive for sale market.
• In industrial, rents fell between 3-4% in 2024. Some time will be required to absorb excess capacity, but supply growth will slow.
• For lodging, Green Street expects to see modest growth but upside will be limited by the strong U.S. dollar and operating expenses.
• Mall fundamentals remained healthy in 2024. Retailers are increasingly viewing opening physical brick & mortar locations as a profitable endeavor, particularly in "A" malls, the most desired spaces.
• The office sector struggled again in 2024, and Green Street expects a bottom in 2025 with a more pronounced recovery likely in 2026.
• Self-storage experienced a mini recession in 2024. Fundamentals fell short of expectations, driven by volatile interest rates, persistently high mortgage rates and muted home sales, but a slow recovery is expected in 2025. Senior housing continued to levitate higher in 2024. Demand and cash flow growth will remain elevated in 2025 and in coming years.
• In the single-family rental space, Green Street foresees ~4% market rent growth in 2025, but expense growth and property tax assessment pressures will remain challenges.
• The strip center sector is experiencing a period of remarkably strong fundamentals with occupancy at historical high levels, despite weaknesses in specific niches like drugstores and theaters.

Green Street's analysts have also seen dramatic growth in global data center investment, influenced by the adoption of cloud and the early uptick of AI services across industries. The Global Data Centers Outlook covers the landscape and markets where investments have the biggest opportunity for return. According to Green Street analysts, "Hyperscale tenants will sign the bulk of new deals as '25 data center investment budgets increase."

To request a sample report from Green Street please visit here.

Register to attend this year's sector outlook webinars, here.

About Green Street

Green Street is the leading provider of actionable commercial real estate research, news, data, analytics, and advisory services in the U.S., Canada, and Europe. For nearly 40 years, Green Street has delivered unparalleled intelligence and trusted data on the public and private real estate markets, helping investors, banks, lenders, and other industry participants optimize investment and strategic decisions. The firm delivers exclusive market information, conclusion-driven insights, and predictive analytics through a SaaS platform. To learn more, please visit www.greenstreet.com.

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