Kidder Mathews has released its 2026 Western U.S. Market Forecast, offering a comprehensive outlook on the economic conditions, structural shifts, and sector specific trends shaping commercial real estate. The forecast examines commercial real estate trends for office, industrial, retail, and multifamily sectors highlighting where fundamentals are stabilizing, where risks persist, and where new opportunities are beginning to emerge as the market moves into the next phase of the cycle.
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See overviews for each sector below and the full 2026 Western U.S. Market Forecast here.
Economy OverviewThe U.S. economy enters 2026 on solid footing, supported by steady growth, moderating inflation, and resilient consumer fundamentals. While job growth is slowing, strong investment in artificial intelligence and improving productivity are expected to sustain economic expansion and reinforce overall stability in the year ahead. Read more.
Office OverviewThe office market is showing signs of gradual but uneven recovery, with leasing activity strengthening in select markets. Vacancy and sublease availability are beginning to trend downward, while limited new construction supports improving fundamentals as the sector moves toward greater balance in 2026. Read more.
Industrial Overview
The industrial market is moving from a period of cooling toward greater balance. Steady leasing activity, stabilizing demand from logistics, e-commerce, and data center users, and a shrinking development pipeline position the sector for tightening fundamentals and sustained performance heading into 2026. Read more.
Retail Overview
Retail fundamentals remain solid heading into 2026, supported by limited new supply, low vacancy, and continued demand from essential and value-oriented retailers. Suburban centers are outperforming urban cores, foot traffic is steadily recovering, and stable occupancy is expected to support measured rent growth across most retail formats. Read more.
Multifamily OverviewMultifamily enters 2026 on a path toward greater stability as vacancy stabilizes, new supply declines, and affordability challenges continue to support renter demand. Improving capital markets activity and strong renewal rates are expected to help sustain occupancy and drive steady, measured rent growth as fundamentals rebalance. Read more.
