SETT Snapshot
April 2025
We are thrilled to bring you our inaugural snapshot of the latest commercial real estate insights and developments. In this edition, we have rounded up key trends that are impacting the CRE market today and into the near future.
IN THE MARKET
Uncertainty leads the day.
After weeks of preamble, sweeping U.S. tariffs arrived. And then morphed into a moving target as larger tariffs were temporarily paused for most nations (aside from China) to allow time for negotiations. We don’t pretend to know better than others how this will ultimately play out, or whether fears of imminent inflation and recession will prove correct.
What we do see – through the lens of commercial real estate – is a path to opportunity. In the near term, inflation (or even the fear of it) is anticipated to strain development underwriting while uncertainty has already pushed some larger developers to reduce their development forecast. If construction slows or stalls, compression and declining vacancies would provide a significant boost to rent growth in the coming years.
In addition, just weeks ago, near term financing challenges seemed poised to benefit from a (finally) thawing debt market. Should that trend reverse, it could unlock a wave of distressed sales in 2025 for well-positioned buyers who can weather the short-term volatility.
ON OUR MINDS
Is office back? Despite concerns of new speed bumps, it certainly looks that way. Employees returning to the office. Vacancies decreasing. Properties starting to sell. Time will tell but we take the over on an office recovery and believe employers bringing workers back to the office should outweigh the headwinds of a softening economy.
The DOGE effect. Layoffs and GSA lease terminations. Government employees called back to the office. Pain for CRE owners, or potentially a net positive as previously vacant buildings become activated?
Energy. Power is critical to servicing the insatiable demand for Data Centers. Is nuclear power the inevitable solution as some states are exploring? If not, how will the next generation of Generative AI be serviced?
IN THE SETT
SETT has entered a bold new chapter! We are thrilled to welcome two new partners who are expanding our presence across the Mountain West and beyond – ushering in growth and a fresh perspective while deepening our commitment to exceptional client service:
Alex brings over 18 years of experience in commercial real estate, specializing in investments, development and asset management. Prior to joining SETT, Alex held key roles at Dostart Development and Tishman Speyer, where he honed his skills in project management and strategic planning.
With a unique combination of real estate and legal expertise, Brian brings more than 17 years of experience to SETT. He has worked in property management, real estate investments, and litigation, including defending clients against accessibility claims under the Americans with Disabilities Act.
Together, Lamar, Alex and Brian’s complementary skills in real estate, asset management and risk mitigation allow us to deliver exceptional results for our clients. Our hands-on approach and commitment to your success are at the heart of SETT’s mission to maximize value and opportunity.
For more information, please visit our new website.
Thank you for being a valued part of our SETT community. We’re committed to bringing you actionable insights to navigate the ever-evolving CRE market. If you have questions or would like a personalized review of how these trends could impact your properties, please reach out - we’re always here to help.