📊 U.S. and UK offices lag as logistics holds up

Commercial real estate is splitting into winners and laggards, with logistics still resilient while office remains under pressure in the U.S. and UK. Fresh data from national and regional market reports show a sector that is no longer moving in lockstep.

National Association of Realtors’ September 2026 commercial market report says logistics continued to drive demand in the U.S., while office kept edging toward stabilization and retail remained relatively steady. In the UK, Regional REIT’s half-year results, released on 2026-09-08, showed subdued office leasing, elevated void costs and improved occupancy, even as the company said market conditions for regional offices remain challenging.

The data

The U.S. picture is mixed but clear in its hierarchy: industrial and logistics assets continue to attract demand, while office fundamentals remain the softest part of the market, albeit with gradual stabilization. Retail is holding up better than office, but performance varies by location and tenant quality.

• National Association of Realtors said logistics continued to drive demand in its September 2026 report
• Regional REIT said UK office leasing remains subdued, even as occupancy improved to 74.3% and void costs remained elevated
• The UK update was published on 2026-09-08, underscoring continued pressure on regional office markets

What it means for investors

The data reinforces a cross-border pattern that has been building for several quarters: capital is still rewarding functional space with tenant demand and visible cash flow, while offices face slower leasing and weaker pricing power. That dynamic is most acute outside prime locations, where occupiers have more options and underwriting discipline matters more.

Logistics is still carrying the market, while office assets need clearer evidence of absorption before sentiment improves.

The UK reading also matters because it shows that lower supply can improve occupancy without fully repairing the income profile. That creates a narrower recovery path for regional offices than for industrial assets, and it suggests that the gap between prime and secondary commercial property is widening rather than closing.

Bottom line

The latest reports signal that commercial property capital is likely to keep favoring logistics and selectively priced retail, while office markets in the U.S. and UK remain dependent on tighter supply and better leasing momentum before a broader rebound takes hold.