The National Association of REALTORS® (NAR) today released its third-quarter Commercial Real Estate (CRE) Demand Index, revealing that industrial employment growth emerged as a key driver of commercial real estate demand in select markets. While industrial employment remained relatively flat nationally, stronger job growth in manufacturing, transportation and warehousing helped propel markets including San Antonio, Seattle and Nashville higher in the rankings.

Of the 306 metropolitan areas tracked in the index, 143 scored above 100 in the third quarter, indicating stronger commercial real estate demand drivers relative to other markets. St. George, Utah, retained the top spot with a score of 132, followed by Huntsville, Alabama (125); Fayetteville-Springdale-Rogers, Arkansas (123); Sherman-Denison, Texas (123); and Ocala, Florida (121).

"The story this quarter is where companies are hiring," said Nadia Evangelou, Principal Economist & Director of Real Estate Research at NAR. "While industrial employment has been relatively flat nationally, some markets are adding jobs much faster than others. San Antonio is a good example, moving from 76th to 9th in just one year. These differences in local employment growth are reshaping which markets show the strongest commercial real estate demand signals."

Key findings from the Q3 2026 CRE Demand Index include:

• San Antonio climbed from 76th to 9th over the past year (the largest increase), Seattle rose from 146th to 44th and Nashville advanced from 73rd to 20th. Austin also entered the top 10.
• Leisure and hospitality employment increased in approximately two-thirds of metros, while retail trade employment lagged.
• Miami, New York, Los Angeles and San Francisco continued to score below average, though San Francisco improved approximately five points year-over-year.

"Two markets can have similar vacancy rates and rent growth, but very different underlying demand," Evangelou added. "Looking at where jobs are growing helps us understand where commercial real estate demand may be heading."

NAR's quarterly CRE Demand Index tracks the underlying economic drivers shaping commercial real estate demand across 306 U.S. metropolitan areas, offering insight into where commercial real estate activity may be strengthening or slowing. The index compares metropolitan areas with one another each quarter, with a score of 100 representing the average metro. Scores above 100 indicate stronger demand drivers relative to other markets, while scores below 100 indicate weaker relative momentum. A score below 100 does not necessarily mean a market is shrinking.

The CRE Demand Index is updated quarterly and includes historical data dating back to 2022.

The full Commercial Real Estate Demand Index, including metro-level rankings, sector-specific scores, historical trends and methodology, is available at https://www.nar.realtor/research-and-statistics/commercial-real-estate-demand-index.

About the National Association of REALTORS®

The National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes—from written buyer agreements to negotiating compensation—visit facts.realtor.