The Global Shift and Local Trends in Real Estate: What CRE Investors Need To Know

The commercial real estate (CRE) sector has undergone significant changes influenced by global shifts and local market trends, particularly across the United States. From the increasing demand for remote workspaces to the effects of globalization and technological advancements, real estate investors are facing new challenges and opportunities. For new investors, it’s crucial to understand both global and local trends. So, what key factors should CRE investors consider to stay informed globally and locally in today’s market?

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The Global Shift in Commercial Real Estate

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The Growth of Property Technology (Proptech)

Technology is streamlining real estate processes, and innovations like blockchain and artificial intelligence (AI)-powered property management systems are set to revolutionize transactions, making them faster, more transparent, and far more efficient. Blockchain, for example, will simplify property ownership and rental agreements by offering secure, immutable digital records. This reduces the need for intermediaries and helps minimize the risk of fraud, making buying, selling, and leasing processes more seamless and reliable for everyone involved.

AI-driven tools will automate routine tasks, such as rent collection, maintenance requests, and tenant communications, leading to lower operational costs for landlords. These technologies will also help optimize building management, improve energy use, and enable predictive maintenance, saving time and money. Tenants, on the other hand, will benefit from faster, more personalized services. 

Proptech will reshape the commercial real estate landscape by improving efficiency, reducing costs, and enhancing tenant experiences as it evolves. Ultimately, this will make the market more competitive and driven by innovation.

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Demand for Sustainable and Green Properties

Environmental sustainability has become a significant priority for developers and tenants, driven by the growing awareness of the need to minimize buildings' environmental impact. Green certifications like Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM) are now essential in shaping how buildings are designed, constructed, and operated. These certifications ensure buildings reduce their carbon footprint and provide healthier environments for those who use them. 

Developers who integrate green building practices and obtain sustainability certifications are finding themselves ahead of the curve as the demand for sustainable buildings continues to rise. Tenants are increasingly looking for eco-conscious spaces that reflect their values and commitment to the environment, and companies are keen to provide workspaces that foster a sense of responsibility toward the planet. 

Moreover, employees are more inclined to work in green-certified buildings, knowing they contribute to a healthier, more sustainable future. Sustainable buildings also offer financial benefits and lower operating costs due to energy-efficient systems and water-saving technologies, making them highly attractive to tenants and investors.

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Globalization and Cross-Border Real Estate Investment

Globalization has also excitingly reshaped the CRE sector, creating new opportunities for investors worldwide. As cross-border transactions become more common, international investors are increasingly drawn to markets in the U.S., Europe, and Asia, fueling demand for prime properties. 

This influx of foreign capital offers developers and property owners fresh avenues for growth while intensifying competition in key locations, driving up property values. One of the biggest drivers behind this shift is the rise of online platforms that make cross-border transactions easier and more efficient. 

As the CRE market becomes more interconnected, a more dynamic and competitive global real estate environment emerges. Investors can now explore international markets, research, and complete transactions anywhere. This accessibility breaks down traditional barriers and speeds up investment, making global markets more approachable for small investors and large institutional players. For developers and property owners, this means increased access to capital and more significant opportunities for growth. 

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Commercial Real Estate Trends in the US

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Retail Sector Revival

Investors are increasingly turning their attention to open-air neighborhood shopping centers, particularly those anchored by grocery stores, and for good reason. These centers offer a steady flow of foot traffic and a diverse mix of tenants, from coffee shops to medical centers, making them hubs for local communities. With more people working from home and shifting toward local, convenient shopping options, these spaces have become more relevant than ever. 

Rather than building from scratch, investors are now focusing on revitalizing existing properties, which makes financial sense given the high cost of new construction. The higher costs of new developments are prompting a trend toward repurposing and upgrading older retail spaces, transforming them into vibrant community-centric centers. These rebuilt centers attract a broader range of tenants, including essential services and lifestyle-oriented businesses, creating a sense of connection for residents. 

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Industrial Sector Stabilization 

The industrial sector thrived during the pandemic because of e-commerce growth, but it hit a bump in 2024 due to oversupply. Developers had been building rapidly to meet the surge in demand but, by 2024, the market had become saturated. In 2025, experts predict a recovery as new construction slows and demand picks up again. This could lead to a shortage of available properties in the coming years, likely driving rent increases and boosting property income.

This means tighter vacancy rates for local markets, especially in high-demand areas like logistics hubs and urban centers. As the supply of industrial space shrinks, businesses that need space — like e-commerce companies and manufacturers — will find it harder to expand, leading to rising rents. Landlords with prime properties will benefit, and investors will likely focus on these markets for higher returns. In the long run, this trend may also prompt innovative solutions, such as repurposing existing spaces or creating more flexible industrial options, which could reshape the local real estate market and drive growth.

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Rise of Sunbelt Popularity

The rise of the Sunbelt region in U.S. CRE has been brutal to ignore in recent years. States like Texas, Florida, Arizona, and Nevada have seen a population surge due to factors like a lower cost of living, more attractive tax policies, and a growing need for commercial spaces. This influx of people has sparked significant demand for medical office, industrial, retail, and multifamily properties, making the Sunbelt a hot spot for CRE investment.

What sets the Sunbelt apart is its business-friendly climate. Many companies are moving or expanding to these states, drawn by lower taxes, fewer regulations, and access to a growing talent pool. As businesses continue to establish roots in the region, demand for industrial spaces, distribution centers, and medical offices has followed. 

At the same time, the need for housing has led to a boom in multifamily developments. When you compare real estate costs in the Sunbelt to more established markets like New York or San Francisco, it’s easy to see why investors and residents are flocking to the region. The Sunbelt has become a key player in shaping the future of commercial real estate in the U.S.

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Increase of Medical Office Space Demand

Demand for medical office properties is rising as healthcare trends evolve and the need for outpatient facilities grows. Unlike traditional office spaces, medical offices are resilient during economic downturns. This is supported by an aging population needing specialized care and the shift toward more affordable outpatient services. 

These properties, often located near hospitals or high-demand suburban areas, attract reliable, long-term tenants like healthcare systems and specialty clinics. Developers are designing spaces with modern features, including advanced technology and layouts that prioritize patient care. For investors, medical offices provide dependable income and opportunities for steady growth, making them a smart choice for a diversified portfolio.

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The Rise of Pet Ownership Drives Demand for Veterinary Offices

The rise in pet ownership has created a surge in demand for veterinary offices, making them a highly attractive investment opportunity. As more households include pets, the need for veterinary services, including specialty care and emergency clinics, continues to grow. These facilities benefit from long-term leases with reliable, high-credit tenants, such as veterinary chains and specialty providers. In suburban hubs or near high-traffic retail centers, veterinary offices offer stable income and consistent tenant demand, positioning them as a recession-resistant and high-performing asset in the commercial real estate sector.

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What Opportunities Awaits for CRE Investors

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The commercial real estate market will offer savvy investors many opportunities in 2025. We highlight several key opportunities for investors in 2025:

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• Multifamily properties in urban markets facing supply constraints are positioned for steady rent growth and lower vacancies due to strong demand and a shrinking construction pipeline-

• The industrial sector remains strong, with rising demand for logistics and manufacturing spaces, driven by reshoring trends and strategic supply chain investments, particularly in fast-growing hubs like Nashville and San Antonio.

• Medical office buildings (MOBs) are in high demand due to consistent healthcare needs and an aging population. Outpatient care is growing, driving demand for well-located facilities. Long-term leases with high-credit tenants ensure stable income. MOBs' proximity to hospitals and suburban areas makes them essential for patient access.

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• Retail is rebounding, particularly in high-demand submarkets such as New York City. Digital-first brands increasingly establish physical locations, creating new opportunities for investors in well-located retail spaces.

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• Veterinary offices: Rising pet ownership has fueled the need for veterinary facilities, creating consistent demand for clinic spaces. These recession-resistant properties attract long-term tenants and provide investors with reliable cash flow in a growing market.

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Adapt & Thrive to the Changing Market With Alliance’s Expertise

Investors must stay aware of global shifts and local trends as the CRE market evolves. By being proactive, flexible in responding to tenant needs, and vigilant about emerging opportunities, investors can set themselves up for long-term success in this fast-growing and changing industry. 

Commercial real estate is a dynamic and competitive market with significant rewards and risks. However, with the right strategy and partnership — leveraging positive cash flow, strong appreciation, and favorable tax benefits — experienced investors can achieve consistent, long-term gains.

If you're ready to explore the potential of commercial real estate, you need a trusted partner. Alliance CGC is here to help you manage the complexity of this venture. Backed by 30-plus years of experience, billions in successful transactions, and a historical 28% internal rate of return (IRR), our strategies deliver proven, recession-resilient growth. Let’s work together to unlock opportunities and maximize your investment potential. Invest with Alliance now!