The U.S. multifamily market continued its strong recovery in the second quarter, as robust absorption reduced the national vacancy rate, according to CBRE’s latest research.

Positive net absorption, which measures the change in the number of occupied units, totaled 188,200 units in Q2 2025, the strongest second-quarter performance on record. This marks the fifth consecutive quarter in which demand surpassed construction completions. As a result, the overall multifamily vacancy rate fell by 70 basis points to 4.1%, well below its long-term average of 5.0%.

After a record 450,000 new units in 2024, only 83,000 units were delivered in Q2 2025, with a more pronounced slowdown expected in coming quarters.

“Multifamily fundamentals strengthened dramatically in the second quarter, as robust renter demand continues to outpace new deliveries. We expect the gains to continue this year and accelerate in 2026,” said Kelli Carhart, Head of Multifamily Capital Markets for CBRE. 

Average monthly rent increased 1.2% year-over-year in Q2 2025 to $2,228, the first time in two years that rent growth exceeded 1%. Rent growth is likely to further improve amid slowing construction completions and healthy absorption.

Multifamily investment volume rose 7.1% year-over-year in Q2 2025 to $32.9 billion. The multifamily sector accounted for the largest share of total commercial real estate investment volume in Q2 2025 (34%).

Other Q2 2025 Multifamily Sector Highlights: 

•    The Midwest (3.7%), Northeast (3.1%) and Pacific (1%) regions experienced solid year-over-year rent growth. 

•    All 69 markets tracked by CBRE recorded positive net absorption in Q2 2025, with New York (19,300 units), Chicago (9,300) and Dallas (8,700) leading the way.

•    Sixty-eight markets saw net absorption exceed new supply in Q2 2025, up from 52 markets in Q1 2025 and 65 in Q4 2024.

•    Vacancy rates declined in 68 markets quarter-over-quarter in Q2 2025, up from 52 markets in Q1 2025.

PCCP provided a $42 million senior loan to RPM Living Investments for the acquisition of Heritage Plaza, a 341-unit, Class-A apartment community at 227 Dwyer Ave. in downtown San Antonio, Texas.

Built in 2020, the property features modern finishes and amenities and is located one block from the San Antonio River Walk—one of the city’s most visited destinations, lined with popular restaurants, retailers, and entertainment options.

The five- and six-story property includes 307 market-rate (90% of unit mix) and 34 below market rate units (10% of unit mix). Its floorplans include studio (18%), one-bedroom (68%), and two-bedroom (14%) units. Units feature 10’ to 12’ ceilings, stainless steel appliances, kitchen islands, walk-in closets, and balconies or patios in each unit.

Parking is provided via a six-level parking garage. Community amenities include an expansive pool deck, outdoor kitchen and pizza oven, rooftop terraces, resident clubhouse, and a state-of-the-art fitness center. There is also 4,600 square feet (sf) of ground floor retail including Kafe Krave, a daytime café that transitions to a cocktail bar in the evening.

Kirksey Architecture announced the groundbreaking of a 23-acre mixed-use master-planned development in the fast-growing town of Fulshear, Texas.

The development, owned and managed by Janapriya Upscale, is located on a greenfield site bordered on the north by F.M. 1093 (future extension of the Westpark Tollway) and to the south by McKinnon Road. The team held a groundbreaking ceremony on-site on July 25. Several attendees traveled from India for the event, including Ravinder Reddy, Founder and Chairman of Janapriya Group, and Kranti Kiran Reddy, CEO and Managing Director. Don McCoy, Mayor of the City of Fulshear, was also in attendance.

Designed as a pedestrian-oriented complex, the project consists of single-story retail along F.M. 1093 and one- and two-story retail/office condominium buildings grouped around a “Town Square” green space in the center. An open-air pavilion and a coffee/ice cream shop anchor each end of the green with a large lake, providing a beautifully landscaped, walkable environment.

The general contractor is Alpha Bravo Construction. Completion is slated for early 2026.

Stream Realty Partners acquired a 17-acre site in Northwest Houston to develop a Class-A industrial facility.

The forthcoming project will feature a 300,000-square-foot cross-dock warehouse designed to accommodate tenants ranging from 75,000 square feet to full-building users. Construction is scheduled to begin in the first quarter of 2026, with substantial completion anticipated for the fourth quarter of the same year.

Located off West 43^rd Streetbetween Hempstead Highway and Highway 290, the site sits in the heart of northwest Houston’s infill industrial corridor, an area known for its accessibility and strong demand. The building design is being finalized in collaboration with Seeberger Architecture, with Kimley-Horn providing civil engineering services. With the land acquisition complete, Stream is moving swiftly to finalize the construction documents, secure permits, and prepare for groundbreaking.

Stream is developing the project through its Investment Management platform, with Stream’s Industrial Development Services team overseeing execution. The project team includes Justin Robinson, Director Craig McKenna, Senior Director Tyler Wellborn, and Associate Director Kristina Gibson. Additional team members from Stream’s Investment Management group include Chief Investment Officer Adam Jackson, Portfolio Manager Mustafa Ali, Managing Director Scott Thetford, and Associate Tricia Larsen.

Technology companies are strategically optimizing their real estate portfolios to free up capital for artificial intelligence investments while simultaneously enhancing workplace effectiveness, according to JLL.

JLL’s 2025 Technology Spaces Report explores how technology organizations are using data-driven strategies to balance cost optimization with innovation demands across office and specialized research spaces.

“The race to lead in artificial intelligence is driving technology companies to innovate faster and to increase investment by driving revenue growth and cutting costs,” said Rob Kolar, Global Division President, Technology, JLL Work Dynamics. “Technology companies are taking a more strategic approach to their real estate, focusing on both optimization and innovation to support rapid AI growth while maximizing the effectiveness of their office environments.”

While many technology companies maintain hybrid work policies, they are increasingly focused on boosting office attendance and effectiveness. Insights from JLL’s 2025 Global Occupancy Planning Benchmark Report reveals that 56% of technology organizations reduced space in the last year to increase utilization, with 73% having added collaboration space to support hybrid work programs. However, enforcement of in-office policies remains inconsistent, with 24% not enforcing requirements and 45% relying on individual managers to implement attendance on their teams.

Lab and R&D spaces, representing approximately 10% of technology companies’ real estate portfolios, are becoming increasingly important for AI innovation. Despite this growing significance, these specialized spaces lag behind in utilization tracking and data-driven design, with 47% of companies that have lab spaces not currently tracking their utilization.

“To maximize space effectiveness, technology companies need a smart, goal-driven data strategy,” noted Kari Beets, Senior Manager, Technology Research, JLL. “Quality data is paramount in making impactful decisions, but it’s essential to streamline what metrics are collected and presented in light of overall strategy to trim costs and lead to more optimized space.”

Looking ahead, JLL forecasts four key ways technology workspaces will transform in the next 3-5 years:

1. The learning workplace: Agentic AI will create workplaces that adapt automatically to improve efficiency and human experience
2. Innovation-driven investment: Increased spending on AI compute, lab spaces and R&D facilities to support innovation
3. Collaboration over cubicles: Greater emphasis on human collaboration and AI-supported work environments
4. Energy-conscious design: Technology companies will increasingly focus on clean power and energy efficiency to support AI computing demands

The technology workplace of the future will be a learning workspace that is innovation-driven, collaborative – between humans and with machines – and energy-conscious. JLL’s research indicates that 82% of technology real estate leaders believe AI can help solve major CRE challenges.

“To prepare for the future, corporate real estate teams must establish a clear vision that’s aligned with business goals and flexible enough to respond to rapid change,” added Nick LiVigne, Managing Director, Consulting Lead, Technology, JLL. “This means building strong data capabilities to be more predictive, applying AI to the right business problems, and having a test and learn approach to how the teams operate.”

Marcus & Millichap brokered the sale of Keller Springs Village, a 17-suite retail property in Carrollton, Texas. 

Philip Levy, investment specialist in Marcus & Millichap’s Dallas office, had the exclusive listing to market the property on behalf of the seller and procured the buyer. 

Keller Springs Village, located at 2155 Marsh Lane, is a 39,618-square-foot retail center situated on 3.22 acres at the signalized intersection of Marsh Lane and Keller Springs Road. The property is 100% leased to a mix of service-oriented tenants and benefits from strong area demographics, including a population of more than 358,000 residents within a five-mile radius. Positioned near Addison Airport and a major retail corridor along Dallas North Tollway, the center experiences traffic counts of nearly 60,000 vehicles per day.