The Future of Commercial Real Estate: Trends and Predictions for 2025
January 31, 2025
The Intersection of Macro Trends and Micro Evolutions
The commercial real estate industry is at a pivotal moment, shaped by lasting shifts from the pandemic, demographic changes, and evolving tenant demands. Suburban migration, the aging population, and hybrid work models have reshaped how spaces are designed, used, and valued. These broader trends have given rise to innovative property types, including MedTail developments, reimagined office spaces, and mixed-use environments that address both tenant and community needs.
“At AB&B, we’re seeing firsthand how suburban migration and hybrid work are reshaping tenant needs. These trends present an incredible opportunity to innovate and redefine the way we approach property management and development.” Brett Earp, Asset Manager.
1. MedTail: The Healthcare-Retail Hybrid Meeting Community Needs
As suburban communities expand and the population ages, MedTail, which is the convergence of medical services with retail spaces, has emerged as a highly relevant model. These developments:
Address Accessibility: Suburban migration has created a demand for healthcare closer to where people live, making MedTail a logical solution.
Convenience-Driven: Patients increasingly seek healthcare experiences akin to retail: easily accessible, efficient, customizable, and welcoming.
Aging Population: With older generations requiring more frequent healthcare services, MedTail developments provide strategically located options to serve these communities effectively.
“Our MedTail developments are designed with both patients and providers in mind,” says Jimmy Ricard, COO. “By creating spaces that blend convenience, accessibility, and welcoming environments, we’re addressing the growing demand for localized healthcare solutions.”
In 2025, expect to see more retail centers evolving to incorporate MedTail tenants, creating dynamic environments where wellness meets commerce.
2. Evolved Office Spaces: From Function to Experience
The hybrid work model continues to disrupt traditional office space requirements, but it has also inspired a new vision for in-person work environments:
Holistic Workspaces: Companies are reimagining offices to offer wellness-focused designs, flexible layouts, and collaborative areas to attract employees back to the office.
Suburban Office Parks: The suburban shift has spurred the development of smaller, community-centric office spaces that balance work with life outside the city center.
New Opportunities: As older leases expire, landlords have an opportunity to reposition office spaces to meet modern tenant expectations, blending functionality with lifestyle amenities.
2025 is a year where office real estate adapts, blending with other property types to remain relevant in a changing market.
3. The Rise of Mixed-Use Communities
Mixed-use developments continue to gain traction, but they are evolving to combine elements of office, retail, and residential spaces seamlessly:
Office + Retail Fusion: Suburban office spaces are increasingly integrated with retail amenities, such as coworking spaces within shopping centers or offices above retail stores, creating convenience for tenants and consumers alike.
Community-Centric Design: These developments aim to create hubs where people can live, work, shop, and access services all in one location. An ideal fit for suburban migration and hybrid work lifestyles.
Sustainability and Efficiency: Repurposing underutilized office or retail spaces into mixed-use environments also aligns with sustainability goals, meeting both environmental and economic needs.
The Road Ahead
In 2025, commercial real estate will continue to adapt to a world shaped by pandemic-era changes, demographic shifts, and evolving tenant priorities. MedTail developments, reimagined office spaces, and integrated mixed-use communities will lead the way, providing solutions that prioritize accessibility, convenience, and holistic living.
“Staying ahead of these trends requires a combination of innovation, adaptability, and tenant-centric solutions,” says Earp. “We’re committed to meeting tenants where they are: both geographically and in terms of their evolving priorities.”
The Intersection of Macro Trends and Micro Evolutions
The commercial real estate industry is at a pivotal moment, shaped by lasting shifts from the pandemic, demographic changes, and evolving tenant demands. Suburban migration, the aging population, and hybrid work models have reshaped how spaces are designed, used, and valued. These broader trends have given rise to innovative property types, including MedTail developments, reimagined office spaces, and mixed-use environments that address both tenant and community needs.
“At AB&B, we’re seeing firsthand how suburban migration and hybrid work are reshaping tenant needs. These trends present an incredible opportunity to innovate and redefine the way we approach property management and development.” Brett Earp, Asset Manager.
1. MedTail: The Healthcare-Retail Hybrid Meeting Community Needs
As suburban communities expand and the population ages, MedTail, which is the convergence of medical services with retail spaces, has emerged as a highly relevant model. These developments:
Address Accessibility: Suburban migration has created a demand for healthcare closer to where people live, making MedTail a logical solution.
Convenience-Driven: Patients increasingly seek healthcare experiences akin to retail: easily accessible, efficient, customizable, and welcoming.
Aging Population: With older generations requiring more frequent healthcare services, MedTail developments provide strategically located options to serve these communities effectively.
“Our MedTail developments are designed with both patients and providers in mind,” says Jimmy Ricard, COO. “By creating spaces that blend convenience, accessibility, and welcoming environments, we’re addressing the growing demand for localized healthcare solutions.”
In 2025, expect to see more retail centers evolving to incorporate MedTail tenants, creating dynamic environments where wellness meets commerce.
2. Evolved Office Spaces: From Function to Experience
The hybrid work model continues to disrupt traditional office space requirements, but it has also inspired a new vision for in-person work environments:
Holistic Workspaces: Companies are reimagining offices to offer wellness-focused designs, flexible layouts, and collaborative areas to attract employees back to the office.
Suburban Office Parks: The suburban shift has spurred the development of smaller, community-centric office spaces that balance work with life outside the city center.
New Opportunities: As older leases expire, landlords have an opportunity to reposition office spaces to meet modern tenant expectations, blending functionality with lifestyle amenities.
2025 is a year where office real estate adapts, blending with other property types to remain relevant in a changing market.
3. The Rise of Mixed-Use Communities
Mixed-use developments continue to gain traction, but they are evolving to combine elements of office, retail, and residential spaces seamlessly:
Office + Retail Fusion: Suburban office spaces are increasingly integrated with retail amenities, such as coworking spaces within shopping centers or offices above retail stores, creating convenience for tenants and consumers alike.
Community-Centric Design: These developments aim to create hubs where people can live, work, shop, and access services all in one location. An ideal fit for suburban migration and hybrid work lifestyles.
Sustainability and Efficiency: Repurposing underutilized office or retail spaces into mixed-use environments also aligns with sustainability goals, meeting both environmental and economic needs.
The Road Ahead
In 2025, commercial real estate will continue to adapt to a world shaped by pandemic-era changes, demographic shifts, and evolving tenant priorities. MedTail developments, reimagined office spaces, and integrated mixed-use communities will lead the way, providing solutions that prioritize accessibility, convenience, and holistic living.
“Staying ahead of these trends requires a combination of innovation, adaptability, and tenant-centric solutions,” says Earp. “We’re committed to meeting tenants where they are: both geographically and in terms of their evolving priorities.”
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