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Kidder Mathews forecasts industrial momentum in Western commercial CRE
The firm expects vacancy to approach its cyclical peak as leasing activity strengthens, while retail stays resilient on limited new supply.
Kidder Mathews has released its 2026 Western U.S. Mid-Year Market Forecast, outlining expected trends across office, industrial, retail, and multifamily commercial real estate, with a focus on economic conditions, structural shifts, and sector fundamentals. ConnectCRE reports that the industrial sector is gaining momentum, supported by strengthening leasing activity and improving vacancy metrics that are expected to approach their cyclical peak. The forecast also points to a sharply contracting development pipeline and steady demand from logistics, e-commerce, manufacturing, and data center users as drivers of durability. In retail, Kidder Mathews expects resilience to persist through selective growth, supported by limited new supply and low vacancy, alongside continued demand from grocery, discount, and value-oriented concepts. For multifamily and office, the forecast highlights strengthening stabilization, with office gaining stability as leasing activity improves and supply pressures ease, and multifamily moving toward greater balance as demand strengthens and new construction slows.