Top Commercial Real Estate Trends to Watch in 2025

For years, the U.S. housing market felt like the Wild West for anyone trying to buy. Homes were snapped up in hours, bidding wars added tens of thousands to the price tag, and buyers were waiving inspections, contingencies, and even common sense just to stand a chance.

It’s not your imagination — this summer has been weird. From extreme heat domes gripping the South and Southwest, to flash floods in the Northeast and Midwest, to record-breaking hail storms in states like Texas and Colorado, the U.S. has seen one of its most unpredictable weather seasons in recent memory. You could drive from wildfire warnings to hurricane watches in a single road trip. But beyond the daily inconvenience of sudden storms and canceled beach days, there’s a bigger question on people’s minds: Is all this odd weather starting to affect real estate sales — both residential and commercial? The short answer? Yes — but in ways that go beyond the surface. It's not just prices and rates shaping today’s market—unpredictable weather is part of the mix, too. It’s affecting buyers confidence, priorities, and search patterns a lot more than expected. Let’s unpack the impact. A Summer of Extremes: From Mild to Menacing First, let’s look at what’s happening. In Phoenix and Las Vegas, the triple-digit heat has become more than just uncomfortable — it’s dangerous. Cities have seen stretches of 110°+ days that make outdoor activities and even house showings almost unbearable. Meanwhile, coastal areas that are usually temperate are seeing severe humidity, and many parts of Florida and the Southeast are still cleaning up after early tropical storms. In Vermont, record rains have flooded towns that were considered safe zones from extreme weather. California, a state long used to drought, saw sudden rainfall and lingering humidity in areas that aren’t built for it. All this unpredictability has shifted not just the national mood, but also the way buyers and investors approach the market. Residential: The New Buyer Mindset Let’s start with the residential side. Weather has always played a subtle role in buying decisions. A homebuyer in the Northeast may prefer a south-facing driveway to avoid icy build-up in the winter. In hotter states, a good AC system is non-negotiable. But this year, the stakes feel higher. Buyers aren’t just asking about square footage and school districts — they’re asking about insurance premiums, flood zones, water drainage, and heat-resistant windows. And in some markets, those concerns are slowing things down. Take Florida. Some counties saw a drop in residential transactions this summer in comparison to last year — not because of price concerns, but because of insurance availability. Storm surge maps have been updated, and some areas previously considered “safe bets” now come with eye-popping premiums. The same is true in parts of California, where wildfires have driven some carriers to pull back on coverage altogether. Buyers are hesitant. They’re not just thinking about the dream of homeownership — they’re thinking about resilience. Can this home handle what’s coming? On the other end of the spectrum, homes in milder climates are seeing unexpected interest. Areas in the Pacific Northwest, parts of the Midwest, and upstate New York are quietly gaining attention from buyers who want more space, more land, and fewer natural disasters. Odd weather is changing the definition of “desirable.” Commercial Real Estate: Mixed Signals The commercial side tells a more complex story. Weather hasn’t halted commercial deals entirely, but it has changed priorities and timelines. For example, some investors are pausing on retail strip malls in flood-prone areas or delaying warehouse purchases where heat-related power outages are increasingly common. Developers in hotter states are being forced to adapt quickly. In places like Arizona and Nevada, commercial properties are rethinking everything from roofing materials to energy efficiency requirements. Tenants are asking about HVAC resilience and backup generators — questions that used to be reserved for hospitals or data centers are now coming from office tenants and breweries. In Texas, a surge of hailstorms this summer prompted multiple lawsuits and massive insurance claims — and not just from homeowners. Commercial buildings with flat roofs, aging HVAC systems, or large glass facades are suddenly seen as riskier assets, even if they’re fully leased. Weather volatility is also affecting timelines. Construction delays due to extreme heat, flash flooding or even worker safety concerns have impacted development schedules. Contractors in the South are forced to adjust hours to avoid the hottest parts of the day. Supply chain disruptions from storms in one region ripple into others. And while many national retailers and logistics companies are still expanding, they’re becoming more cautious about where they expand. Locations previously considered prime are getting second looks when new FEMA flood maps are taken into account. The Rise of the “Climate-Savvy Buyer” One of the biggest takeaways from this summer’s market is the rise of what many agents are calling the “climate-savvy buyer.” These are individuals and companies who have moved beyond aesthetics and into practicality. They’re reading inspection reports with a different lens. They’re asking about insurance, elevation, utility history, and local emergency response infrastructure. For years, climate concerns were seen as abstract — something for the future. This summer, they became immediate. Realtors in Florida and Louisiana say they’re spending more time walking clients through flood insurance FAQs than home features. In Colorado, where wildfires are now a regular concern, buyers are asking how close the nearest fire station is or if the roof is ember-resistant. And in places like the Midwest, where flooding has become more erratic, sellers are finding that a sump pump and French drain system are now selling points. Market Impact: Not a Crash, But a Shift To be clear, unusual weather isn’t crashing the market. Prices remain strong in many regions, and demand is still high — especially where inventory is low. But the weather is reshuffling the deck. We’re seeing increased migration from climate-vulnerable states to more temperate ones. Cities like Asheville, Boise, and Minneapolis are getting attention from buyers who might once have defaulted to Miami, Phoenix, or Austin. Not everyone is moving because of climate, but it’s starting to factor in. Sellers in high-risk areas may need to adjust expectations, not just on price but on time-to-sell. Properties without modern upgrades to handle weather extremes — things like impact windows, elevated foundations, or efficient cooling systems — are facing more scrutiny. Meanwhile, markets that were previously “off the radar” are seeing upticks in volume, and in some cases, price. People are rebalancing comfort, risk, and cost of living. The Bottom Line This summer’s weather hasn’t just made headlines — it’s made homebuyers and investors think harder, ask more questions, and look beyond the obvious. While no one’s pulling out of the market entirely, behavior is shifting. People are thinking not just about where they want to live or work, but where they’ll feel safer, smarter, and more secure long term. Odd weather used to be a fluke. Now, it’s part of the due diligence process. Real estate is still local, but climate is national — and the two are colliding more than ever .

Owning a location can be both a rewarding investment and a significant challenge. Be it a vacation rental, long-term residential unit, or commercial space, managing it from from a distance requires more than just good intentions. Without proper planning, a promising venture can rapidly become a source of stress and or financial strain. The great news is that this can be rectified and with the right plan— centered around building a dependable local team, using modern technology, and maintaining clear communication — you can effectively oversee your property no matter where you are. This article lays out a practical roadmap to help you do just that. Why Managing Property Remotely Is Different When you’re not nearby, you lose the ability to personally handle day-to-day issues, meet tenants or contractors in person, or even inspect the property on short notice. Tasks that might seem simple — like addressing a maintenance request or ensuring rent is collected on time — suddenly become more complex. That’s why a remote owner must think differently. You have to delegate wisely, set up systems that work without your constant oversight, and be proactive about potential challenges. Step 1: Build a Reliable Local Team Your local team is the backbone of successful remote property management. Even with the best apps and software, you still need trustworthy people on the ground to take care of physical tasks. Hire a Professional Property Manager For many owners, hiring a property manager is the single most effective move they can make. A good property manager can: Advertise and show your property to prospective tenants Screen applicants thoroughly Collect rent and enforce lease terms Arrange for regular maintenance and handle emergency repairs Keep you informed of issues while resolving them locally When choosing a property manager, look for someone with proven experience in your property’s type and location. Interview a few candidates, ask for references, and review their management agreement carefully before signing. Build a Network of Service Providers Even if you have a property manager, it’s helpful to know which plumbers, electricians, landscapers, cleaners, and inspectors are reliable in the area. Some owners prefer to maintain their own preferred vendors list so they know who’s working on their property and at what rates. If you don’t have a property manager, your reliance on this network becomes even more critical. Take the time to vet these professionals just as carefully as you would an employee — because in a sense, they are. Consider a Local Contact or “Eyes and Ears” Some owners appoint a trusted friend, relative, or business associate as an informal point of contact who can check in occasionally, provide feedback, and keep you in the loop beyond what your manager or tenants report. This isn’t always necessary, but it can be helpful, especially in smaller towns where property managers may not always be as hands-on as you’d like. Step 2: Leverage Technology to Stay in Control Handling remote properties becomes much more manageable with technology. The right tools makes monitoring your property, communicating with your team, and the management of documents easy as can be. Property Management Software A smart choice is property management software, handle everything yourself or work with a property manager. Here are some ways the platforms can assist you: Rent collection all tracked online Monitor maintenance requests and work orders Manage lease agreements and digital signatures Screen tenants and process applications Track expenses and generate financial reports Popular options include Buildium, AppFolio, TenantCloud, and Rentec Direct. Monitoring Remotely Smart home technology gives you more oversight and control of vacation rentals and short-term stays. Think about installing: Smart locks for keyless entry and added security Exterior security cameras (where legally allowed) Smart thermostats to optimize energy use These tools let you see what’s happening in real time and respond quickly if needed. Storage on the Cloud and Digital Communication Store all property-related documents — leases, inspection reports, receipts, insurance policies — in Google Drive or Dropbox are secure and great for easy access. Select reliable channels for communications. Email and phone calls still work well, but apps like Slack or WhatsApp can make conversations with your team more efficient and organized. Step 3: Maintain Clear Communication When managing remotely, strong communication is even more important. Set clear expectations from the start and keep the lines of communication open to avoid misunderstandings and unnecessary costs. Set Expectations Early Make sure everyone you work with knows your preferences and priorities and be upfront. For example: How often you want updates (weekly, monthly, only when there’s a problem) How you prefer to be contacted (email, phone, text, app) What decisions they can make without your input and what requires approval How to handle emergencies if you can’t be reached Having a written agreement — even with informal helpers — can make these expectations clear. Regular Check-Ins If everything seems to be running smoothly still check-in, schedule periodic times to keep each other updated. A monthly or quarterly call with your property manager or team ensures you’re kept up to date and allows you to ask questions about anything that might not make it into their standard reports. Be Transparent Let your team know honestly is the best policy, give timely updates — even if the news isn’t good. If tenants are complaining, repairs are delayed, or rent payments are late, you’d rather know sooner than later so you can decide how to proceed. Tips for Long-Term Success Once you have your team, tools, and communication channels in place, here are a few additional tips to help you manage your property effectively over the long term: Visit When You Can While it’s possible to manage remotely without ever visiting, nothing beats seeing the property in person once in a while. Schedule an annual or biannual trip to inspect it yourself, meet your team face-to-face, and get a feel for the neighborhood. Stay Informed About Local Laws Property laws, landlord-tenant regulations, and tax rules vary by location — and they can change. Stay up to date to ensure you remain compliant and avoid potential legal problems. Plan for Emergencies Have a clear plan in place for emergencies, such as natural disasters, major repairs, or vacancies. Make sure your team knows what steps to take if something unexpected happens and you can’t be reached immediately. Keep Financial Records Organized Track income and expenses carefully. Not only will this help you monitor profitability, but it also makes tax time much easier. Many property management software platforms include built-in financial reporting tools to simplify this task. Common Challenges to Watch Out For Even with a solid plan, you’re likely to encounter a few challenges along the way. Here are some of the most common and how to address them: Delayed response times: Minimize this by setting clear response expectations with your team and using tools that support instant communication. Unreliable contractors: Always vet service providers, and try to have backups lined up in case your usual contacts are unavailable. Poor tenant behavior: Make sure your screening process is thorough and consistent to minimize the chance of problem tenants. Hidden maintenance issues: Regular inspections — even virtual walkthroughs with your manager — can help catch problems early. Final Thoughts Managing a property in a different location doesn’t have to feel overwhelming. By focusing on three key areas — building a trustworthy local team, using technology to stay connected and organized, and maintaining open, clear communication — you can keep your property running smoothly while you’re away. The upfront effort you put into finding the right people, implementing the right tools, and setting the right expectations will pay off in the form of a more profitable, less stressful ownership experience. Whether you’re a seasoned investor or just starting out, these principles can help you succeed as a remote property owner.

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