Labor market conditions remained soft in April, as payroll growth slowed from March and employment showed little net change over the prior 12 months. The unemployment rate held at 4.3%, while wage growth remained positive but measured. Inflation rose to 3.8%, driven largely by energy prices, while shelter costs matched the monthly CPI increase but trailed overall inflation on an annual basis. The Federal Reserve kept rates unchanged as long-term borrowing costs moved higher, with the 10-year Treasury yield rising to 4.32% amid renewed geopolitical uncertainty. At the same time, GDP growth rebounded to 2.0% in Q1 after a weak year-end reading, supported by stronger investment, exports, and government spending. However, elevated inflation continued to weigh on the broader outlook.
Below is a summary of the performance of each major commercial real estate sector in April of 2026.
Office Properties
The U.S. office market moved closer to stabilization in April 2026 as annual net absorption reached 8.5M SF, reversing a 27.1M SF decline from the prior year. Vacancy fell to 13.9% and rent growth rose to 1.3%. Class A led leasing recovery while Class C held the tightest vacancy at 5.4%. Source: NAR analysis of CoStar data.
Multifamily Properties
U.S. multifamily demand stayed above historical norms in April 2026 despite a 22% annual decline in absorption. Deliveries slowed 23% but still outpaced demand, narrowing the supply gap. Vacancy dipped to 8.5% and rent growth reached 0.4%. Class C led rent growth at 0.9%, while NYC, Dallas-Fort Worth, and Phoenix each absorbed 20K+ units. Source: NAR analysis of CoStar data.
Retail Properties
U.S. retail real estate posted 4.4M SF in net absorption in April 2026 with 2.0% rent growth, the highest among major property types. Vacancy edged up to 4.4% but remained tight. General retail led with the lowest vacancy at 2.7%, while Dallas-Fort Worth topped absorption at 2M+ SF. Source: NAR analysis of CoStar data.
Industrial Properties
U.S. industrial real estate continued normalizing in April 2026 as net absorption rose 30% YoY to 122.7M SF, yet deliveries still doubled leasing activity. Vacancy climbed to 7.6% and rent growth slowed to 1.3%. Logistics drove demand at 105.9M SF, while Dallas-Fort Worth led absorption at 29.9M SF. Source: NAR analysis of CoStar data
Hotel Properties
U.S. hotel occupancy held at 62.5% in April 2026, still below pre-pandemic levels as remote work weighed on corporate travel. ADR reached $162/room and RevPAR $101/room. Investment volume rose to $24.7B. Maui led ADR at $529, while NYC posted the highest occupancy at 84%. Source: NAR analysis of CoStar data.
