Commercial leasing providers serve as lessors of buildings for nonresidential purposes. Industry participants include owner-lessors of nonresidential buildings, establishments that rent real estate and then act as lessors in subleasing it and establishments that provide full-service office space. Through the end of 2025, lessors have experienced mixed demand from critical downstream market segments. Since the onset of COVID-19, demand for office space has been volatile amid work-from-home and hybrid work arrangements. However, demand for industrial and retail spaces has risen, bolstered by gaining e-commerce sales and resilient consumer spending, buoying industry revenue. Over the past five years, industry revenue has climbed at a CAGR of 0.6% to reach $257.5 billion, including an estimated 0.7% gain in 2025. From 2020 to 2022, commercial leasing companies benefited from low interest rates, stimulating business expansion. However, in response to surging inflation, the Federal Reserve began raising interest rates in 2022 and continued into 2023. Rising interest rates translated into higher borrowing costs for tenants seeking new leases for their business operations. This can make expanding or relocating to a larger space more expensive. The industry benefited from three interest rate cuts in 2024. Industry profit remains high, reaching 51.6% of industry revenue in 2025. Industry revenue will climb at a CAGR of 2.6% to $292.9 billion through the end of 2030. Demand for office space will remain subdued over the next five years. However, a shortage of prime office spaces will elevate rent for Class A office buildings, benefiting lessors with those in their portfolios. Per capita disposable income growth and a continuation of climbing consumer spending will bolster demand for retail spaces, especially in suburban and Sun Belt markets. E-commerce sales will continue to power demand for industrial space as the percentage of e-commerce sales to total retail sales will mount.

Graph and download economic data for Net Percentage of Domestic Banks Tightening Standards for Commercial and Industrial Loans to Large and Middle-Market Firms (DRTSCILM) from Q2 1990 to Q1 2025 about tightening standards, commercial, domestic, Net, percent, loans, industry, and USA.