Commercial real estate showed mixed results in the third quarter of 2026, according to Lee & Associates’ market report. Industrial net absorption reached 84,081,618 square feet, representing an 89 percent increase from the second quarter, while overall warehouse and distribution vacancy rose to 7.3 percent nationally.
At the same time, the North American office market experienced a stall in tenant growth. Third-quarter net absorption for office space dropped to negative 4.9 million square feet, with 70 percent of that leasing deficit occurring in Class B buildings, as reported by Lee & Associates.
Meanwhile, retail demand continued a rebound with third-quarter net absorption totaling 9,969,407 square feet in the United States. The national retail vacancy rate settled at 4.3 percent, driven by limited new construction starts and constrained available inventory across various regional markets.
