Commercial Real Estate Cos. Survey Pulls Back; 3Q Softest Quarter Since 3Q 2024.

The Evercore ISI Commercial Real Estate Cos. Survey moved down from 55.0 to 52.9 in September, after rebounding in August from July's 50.0, its lowest level since July 2024. The 3Q average of 52.6 is the softest quarter since 3Q 2024 and down from 54.5 in 2Q. After steadily improving in 2H 2024 and early 2025, the survey moderated through much of last year and has been choppy in 2026. Contacts describe a solid spending environment, though geopolitical conflict, higher rates, energy prices and the change in NYC tax policy have increased uncertainty over the past few months. A resilient economy continues to support demand for commercial space. Premium locations remain in demand, while demand tails off in lower-quality locations, and retailers focused on the higher end are outperforming other segments. Office remains challenging, though leasing in NYC and SF is good, and multifamily demand is solid.