Welcome to the Deep Dive. Today we’re really plunging into the modernization of commercial real estate, looking specifically at 2025. Yeah, it feels like a big year. Does this, we’ve gathered quite a mix of sources, articles, some visual data, trying to, get under the skin of the key trends, what’s really driving this transformation.

We’re looking at things like how digital tools are changing physical spaces, shifts in property types, multifamily retail. Logistics and those population shifts too, right? People moving around the country. Exactly. And it just feels like 2025 is shaping up to be a really pivotal year for the CRE sector.

It certainly seems that way. I think what’s really interesting is how technology changing demographics consumer habits. They’re all kind of converging, right? And it’s creating this this very dynamic environment for commercial real estate. So the goal today, is to dissect these different pieces.

Yes. See how they connect and really pinpoint what’s most critical for you, the listener, to understand as this modernization unfolds. Okay. Let’s let’s unpack this then. One of the first things that well jumps out from the sources is just how pervasive technology has become. We saw that image, you know that when was someone using a digital interface overlaid on a physical space?

Yeah, very illustrative. It really highlights how tech is becoming well fundamental to how we even understand and operate commercial properties now. The word modernization just keeps popping up around 2025. The key insight there I think, is that this merging of digital and physical, it’s not just about, cool interfaces, right?

It’s actually changing how we value and manage CRE fundamentally. Think about getting real time data from these tools. Yeah, understanding usage patterns, exactly how efficient things are. Running that level of insight we just didn’t have it before. It’s a really profound shift actually. For you listening, understanding this tech piece seems crucial.

Absolutely. It gives you that competitive edge helps you see the opportunities, maybe the challenges too, across different fields. Okay. Let’s pivot a bit. We’ve got some information pointing to pretty big shifts in the multifamily market. I. Ah yes. The Lament event. Yeah, exactly. Lament in conversation June 4th, 2025.

And the title is Turning Point. Multifamily Strategies Amidst Policy and Economic Shifts. That phrase Turning Point. It’s quite strong, isn’t it? It really suggests something significant is happening or about to happen. Multifamily is often seen as some kind of bellwether, A leading indicator.

Yeah, exactly. For broader economic trends, policy impacts, especially housing, urban development, it’s so fundamental. Housing is and sensitive to policy changes, economic pressure. So an event mid 2025, calling it a turning point. It strongly suggests that well, substantial policy shifts or economic forces are likely reshaping strategies right now in that market.

So if you’re in real estate, finance, urban planning, keep a close eye on multi-family strategies, it’s gonna be incredibly valuable, I think. Absolutely. And speaking of shifts, we have some fascinating data on where people are actually moving. Relocation maps. Yes. One shows Idaho and South Carolina topping the charts for post pandemic moves between January 21 and January 25.

So a clear trend there. But then another map gets more specific. Looking at people leaving California and New York from October 23 to October 24. And where do they go? Mostly neighboring states, it seems for Californians. Arizona got 8.1%. Nevada 6.9%. Yeah. And Texas took 10.1%. Okay. And for New Yorkers leaving New Jersey saw 14.6% Connecticut, 6.9% in Pennsylvania, pulled in 17.1%.

Wow. Those are some significant numbers and it raises that key question right. How does this movement directly impact the CRE market? Yeah. What’s the knock on effect? When you see population shifting like that, it naturally changes demand, both residential obviously, but also commercial properties and the places people are moving to and the places they’re leaving.

Exactly. Businesses often follow the people, so that could mean new construction, more competition for existing space, maybe shifts in property values too. So for anyone listening, understanding these population flows is pretty critical. Definitely whether you’re thinking about real estate investment, where to locate a business or even just forecasting regional economic growth.

These aren’t just stats. They represent real shifts on the ground. Good point. Okay, let’s turn to the retail sector. Now. We saw logos for retail dive and chain store, so some expert views there. Reputable sources, and there’s that graphic showing year over year percentage changes in consumer spending across different retail types.

This was from late March to late April, 2025, and it wasn’t uniform, was it? Not at all. Really varied performance. We’re talking liquor stores, clothing department stores, super stores, electronics, grocery shoes, even used merchandise stores. All showing different trends. Interesting. And it looks like external factors like those tariffs, the China 50% one others, and that 90 day pause, whatever that was, seemed to have an impact on spending.

Yeah. You can see dips and bumps aligning with those events, perhaps. And we even get some visual hints with brands like Kirkland’s, Ralph Lauren. Maybe hinting at Home Goods and Apparel. That produce section could represent grocery performance like A LDI or Walmart perhaps. What’s revealing there, I think is the granularity.

We’re not just seeing retail is up or retail is down. No, it’s much more specific. Exactly. We see how specific segments are reacting to economic stuff, trade policies, in a pretty short window. The difference between say discount grocers and high-end fashion tells a much more nuanced story. It really does, and having those specific brand examples, it helps ground the data in everyday shopping experiences we all recognize.

So for anyone tracking consumer demand, business owners, investors, or just interested in the economy. Yeah. Yeah. This kind of detailed insight is incredibly useful. Definitely. Okay. Finally, let’s look at logistics and industrial real estate. The backbone of commerce increasingly seems like it. We have this chart showing modern logistics concentration by market, demand profile.

It breaks markets down into different types, like things like high population port markets, SF Bay area Greater NYC are examples than local consumption like DC Philly High Growth Regional Dallas, Atlanta fit there. Okay, so different drivers for demand, right? Also regional distribution hubs. Think Chicago, Kansas City, and import heavy markets like Memphis and Savannah.

That makes sense. It really highlights that logistics needs aren’t uniform, are they? Not at all. It depends heavily on well, population density, port activity, regional growth, how many imports are flowing through. And we also saw that image suggesting a big logistics park digital commerce park, one down in Texas, right near major highways.

I recall I 20, I 45, exactly. Strategically placed. And that’s a perfect example, isn’t it? How infrastructure and specific market demand drive the creation of these huge logistics centers. So understanding these concentrations is key if you’re in supply chain management, definitely. E-commerce, regional economic development.

Yeah. It shows you where that critical infrastructure is, where the growth potential lies in those sectors. Okay. So let’s try and bring it all together. It seems the modernization of CRE in 2025 is it’s a pretty complex tapestry. It really is. We’ve got technology getting deeply embedded in how we.

Use and manage buildings. Deep integration. The multifamily market seems to be at a a turning point facing significant shifts. Yeah. Policy and economic pressures there. Populations are moving, reshaping demand geographically, big time retail is continuing to evolve. Reacting to economic pressures.

Consumer behavior shifts constantly adapting, and the whole logistics and industrial landscape is being shaped by very specific market needs and infrastructure. It’s all interconnected, isn’t it? That’s the key takeaway. I think, precisely. These aren’t happening in isolation. They’re all feeding into each other, contributing to this ongoing transformation of commercial real estate, the interplay between tech, adoption, demographics, economic policies, it’s creating a really transformative moment.

Yeah. So here’s where you really start to think, given all these rapid changes we’ve talked about the tech, the moves, the retail shifts, logistics, what unforeseen factors, what surprises might further shape the future of commercial real estate beyond 2025? That’s the big question, isn’t it? What haven’t we seen yet makes you wonder what other curves might be coming just around the corner.