Glenn Mueller has been tracking commercial market cycles since the early 90s and we pay close attention to the market phases.
I have the Q1-26 report and will share the various property types and how our area is impacted as I absorb it . . . here's the summary of the 5 property types in 56 MSAs, and I will be sharing the individual property types in posts to follow . . . #CREMarketCycleMonitor #MuellerChacon #MohaveCountyAZCommercialRealEstate #MohaveCountyAZCREBroker
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Mueller - Chacon
Real Estate Market Cycle Monitor
First Quarter 2026 Analysis – May 2026
The Physical Market Cycle Analysis of 5 Property Types in 56 Metropolitan Statistical Areas (MSAs).
The U.S. economy grew at a 1.6% annualized rate in 2026Q1, supported by consumer spending and AI-related business
investments. The labor market saw an early hiring burst with 130,000 jobs added in January and an unemployment rate
stabilizing around 4.3%. However, inflation proved persistent, with the PCE index increasing at a 4.5% rate. Commercial
real estate property type trends are quite different, with low supply allowing retail and hotel to do well, while oversupply
continues to hurt industrial and apartment, and office is hurting from slow demand growth.
Office occupancy increased 0.1% in 1Q26, while rents were up 1.1% for the quarter and were up 1.0% annually.
Industrial occupancy was flat in 1Q26, but rents were flat for the quarter and were up 1.5% annually.
Apartment occupancy decreased -0.1% in 1Q26, and rents were up 0.9% for the quarter, and were up 0.2% annually.
Retail occupancy was flat in 1Q26, and rents were up 0.4% for the quarter and were up 2.3% annually.
Hotel occupancy increased 0.05% in 1Q26, and RevPAR improved 1.4% for the quarter and was up 5.9% annually.
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