Latitude Commercial released its annual market report, which overall showed a market recalibrating after a volatile few years.
“At Latitude Commercial, we spent the year navigating a market shaped by higher interest rates, tighter credit conditions and a renewed emphasis on disciplined underwriting,” wrote Aaron McDermott, president of the commercial real estate firm in the introduction to the 2025 report. “While transaction activity was uneven across asset classes, improved rate certainty allowed buyers and sellers to reset expectations and move toward more rational, fundamentals-driven decision making.”
The report showed retail space rents at $18.38 per square foot in the fourth quarter in Northwest Indiana, a 37 cent increase year-over-year. Sales were volatile, closing the year at $78 per square foot, “demonstrating continued buyer confidence in Northwest Indiana retail fundamentals.”
The office space market was stable at 5.1% vacancy rate, a trend that continues to show the Region's consistency in this category. However, rents did decline in 2025 to about $19.85 per square foot.
“Despite softening rents, elevated inflation, and evolving office-use dynamics, the Northwest Indiana office real estate market remained resilient throughout 2025, supported by stable occupancy and limited volatility in vacancy,” the report said.
Industrial leasing vacancy remained low to a “a stable range near 3.8% to 4.3% throughout 2025,” the report said.
McDermott predicted a more stable commercial real estate market in 2026. Learn more about the report's findings here.
Latitude Commercial is based in Crown Point and has an office in Denver.
