The commercial real estate market closed 2025 with solid overall performance, finishing the year 16 percent above 2024 in total closed sales volume. Total commercial sales reached $306.4 million compared to $263.5 million the prior year.

Transaction activity remained steady, with 212 commercial sales in 2025 compared to 218 transactions in 2024, representing a modest 3 percent decrease.

While overall volume increased, it is important to note that the $49 million Mesa Mall transaction in July accounted for a significant portion of this year’s total. Excluding that single sale, 2025 volume would have totaled approximately $257.4 million, reflecting a slight 2 percent decrease compared to 2024.

Notable Q4 transactions

Fourth-quarter activity included several significant transactions across multiple asset classes.

Independence Plaza, a 66,568-square-foot multi-tenant office building located at 1048 Independent Ave., sold for $5.5 million on Nov. 19.

The Studio 6 hotel at 704 Horizon Drive sold for $5.67 million on Oct. 15.

The newly opened Starbucks at 2600 Dos Rios Drive traded for $3.6 million on Oct. 29.

Paradise Park Mobile Home Park, a 255-unit community located at 585 25 1/2 Road, sold for $27,452,900.

Westlake Mobile Home Park, a 58-unit property at 830 Independent Ave., sold for $5,789,600.

These transactions reflect continued investor interest in hospitality, retail, office and manufactured-housing assets.

Inventory expands for owners, tenants

Inventory levels increased meaningfully heading into year end. There are currently 257 active commercial listings on the market, up 25 percent from the third quarter and up 23 percent compared to the same period last year. Active lease availability stands at 177 available spaces, down slightly from the prior quarter, but up 6.6 percent year over year.

The increase in listings suggests expanded options for buyers and tenants while also signaling a more competitive environment for sellers and landlords entering 2026.

Permits, development activity show acceleration

One of the most notable shifts in 2025 was commercial building permit activity. Total permits increased 47 percent year over year, rising from 30 permits in 2024 to 44 in 2025.

Much of this growth occurred in the store and mercantile category, including projects such as the new McDonalds on Horizon Drive and the Golden Gate gas station in Whitewater. The rise in permitting indicates renewed confidence in commercial expansion and retail development.

Economic fundamentals remain supportive

County sales-tax revenue reached $56.4 million in 2025, up 3 percent from $54.7 million in 2024 and up 5.4 percent compared to 2023.

This growth occurred despite national consumer sentiment declining 15 percent over the past year, according to the University of Michigan Consumer Sentiment Index. Locally, sales-tax data suggests continued consumer-spending stability and underlying business resilience.

Outlook

Taken together, these indicators point to a commercial market defined by strong overall sales volume, stable transaction activity, expanding inventory, increased development momentum and continued economic support from sales-tax growth.

For a deeper breakdown of sales trends, leasing activity, development data and market performance by asset class, visit braycommercial.com to download the full Q4 Commercial Market Report.

Darah Galvin is a data analyst for Bray & Co. – All Things Real Estate.