While the trends observed in the first half of the year are largely market-driven, exceptions exist based on property-specific factors, sale conditions, and unique opportunities. Each transaction must be evaluated on its own merits. Key influences such as construction costs, tenant improvement requirements, design, and debt are playing a critical role in both operations and capital market activity. A deep understanding of the property, financials, and the motivations of both buyer and seller is more important than ever.

CBRE continues to see rising demand for debt placement, appraisals, and broker opinions of value across the U.S. If you're considering your next real estate move, our team is actively tracking every transaction in the market and can provide a confidential valuation for your property or portfolio.

Sources: CoStar, CBRE

• CoStar reports: Average cap rate at 6.2%, bid-ask gap at 3.8%, and average time to sale at 9.7 months (vs. 8.7 months over 5 years).
• Outlook: Retail sales expected to remain stable and healthy through year-end.

Notable Retail Sales: Stassney Heights, Parkside at Mueller, Starbucks Coffee, Burnet Retail Center, Olive Garden, Raising Cane’s, Temple Shopping Center, Dollar General, Ladera Bend, San Clemente Retail, Mays Crossing, Cat Hollow Center, Pecan Plaza.


Office
Over the past five years, the office sector has undergone a major shift. Occupancy, rental rates, and work-from-home trends are still stabilizing. Market uncertainty has driven the average price per square foot down 50% to $213, though premium assets like The Sail Tower sold for $699/SF in downtown Austin.

There’s a clear flight to quality, with tenants benefiting from concessions and investors targeting top-tier assets. In 2025, the City of Austin acquired Barton Skyway 1 & 2 and University Park, removing 600,000 SF from the leasing market.

Looking ahead, low- and mid-rise suburban offices are expected to see more activity due to upcoming debt maturities. With little to no new construction anticipated, buyers are positioning for long-term gains. Transaction volume should remain steady, though values will vary significantly based on asset performance.

Notable Office Sales: Barton Skyway 1 & 2 (CBRE), University Park (JLL), Mountain Ridge (CBRE), The Park at Barton Creek, Quarry Lake II, The Diamond Building.


Industrial
Industrial development and deliveries in Central Texas are approaching all-time highs, creating pressure on leasing and contributing to softening rental rates. Over the past five years, the average sale price has increased to $175 per square foot. Recent cap rate trends show sales ranging from 6.5% to 7.5%. Sales transaction volume is expected to decline by 20% compared to the five-year average, with the bid-ask gap trending around 8.2% below list price. Despite these challenges, barriers to entry and extended delivery timelines are expected to help maintain stable market values through the end of 2025 and into 2026.

Notable CBRE Industrial Sales: Taylor Industrial and Howard Lane Industrial