Kaufman Provides 2025 Commercial Leasing Market Insights
Pryor Cashman Partner Bradley A. Kaufman, a member of the Real Estate Group and co-chair of the Leasing Practice, wrote an insightful article titled “Trends in Commercial Leasing” for Reuters’ Practical Law The Journal.
In the article, Kaufman examines the evolving landscape of the U.S. commercial leasing market, detailing the challenges landlords and tenants are facing across the office, retail, and industrial sectors. The article discusses several key factors influencing the market, including rising interest rates, inflation, shifts in workplace dynamics, climate change impacts, and emerging technologies like generative AI. Kaufman emphasizes that these factors are reshaping leasing strategies, with tenants seeking greater flexibility and landlords adapting with incentives to attract new tenants.
For office leasing, Kaufman notes the continued impact of the hybrid work model, which has led to smaller office footprints and shorter lease terms. He adds:
“While the office downsizing that followed the pandemic has not completely ended, it slowed significantly in 2024, with many key metrics showing stabilization and continued recovery in 2025.”
In retail, discount retailers and luxury brands are seeing growth, while the restaurant industry faces challenges due to consumer cost-consciousness. Meanwhile, the industrial leasing market is shifting toward stability, with tenants gaining more negotiating power amid a decline in new supply.
Kaufman also highlights that landlords and tenants are increasingly focused on quality and location as they navigate a market that continues to evolve in response to broader economic shifts.
Read the full article using the link below (subscription may be required).
