Seattle, Wash. (August 11, 2026) – Kidder Mathews has released its 2026 Western U.S. Mid-Year Market Forecast, offering an updated outlook on the economic conditions, structural shifts, and sector-specific trends shaping commercial real estate. The report examines trends for office, industrial, retail, and multifamily sectors, highlighting where fundamentals are stabilizing, risks are persisting, and new opportunities are beginning to emerge as the market moves into the second half of the year.
See overviews for each sector below and the full 2026 Western U.S. Mid-Year Market Forecast here.
Economic Overview
The U.S. economy enters the second half of 2026 on stable footing, with growth continuing at a more measured pace. Resilient consumer spending and accelerating investment in artificial intelligence continue to support expansion, while inflation gradually eases and the labor market normalizes. Read more.
Office Overview
The office market is gaining stability as leasing activity strengthens and supply pressures ease. The flight to quality remains a defining trend as tenants gravitate toward premium, well-located space, while declining sublease availability and limited new construction support a more balanced environment. Read more.
Industrial Overview
The industrial sector is gaining momentum as leasing activity strengthens and vacancy approaches its cyclical peak. A sharply contracting development pipeline and steady demand from logistics, e-commerce, advanced manufacturing, and data center users continue to position industrial as one of commercial real estate's most durable sectors. Read more.
Retail Overview
Retail remains resilient amid selective growth, supported by limited new supply, low vacancy, and continued demand from grocery, discount, and value-oriented concepts. Suburban centers continue to outperform urban cores, and retail sales have reached near-record levels even amid a more cautious economic environment. Read more.
Multifamily Overview
Multifamily is moving toward greater balance as demand strengthens and new construction slows, while persistent affordability challenges continue to keep renters in the market. Investment activity is gaining momentum as capital markets stabilize, positioning the sector for steady, measured rent growth ahead. Read more.