AI is shaping the future of commercial real estate, offering transformative benefits in acquisitions, operations, and asset management. But one untapped potential lies in advancing diversity, equity, and inclusion (DEI). New research from CREW Network highlights how AI can help eliminate hiring biases, promote gender equity, and create personalized learning opportunities to empower women and minorities in the industry.

However, the benefits won’t come without action. CREW CEO Wendy Mann emphasizes the need for women to embrace AI and leverage it to enhance their expertise and leadership roles. While 63% of men report a functional understanding of AI, only 45% of women say the same. Closing this gap is critical for achieving greater representation and driving innovation.

AI also has the potential to mitigate bias in hiring and promotion processes while providing tools to streamline administrative tasks, allowing professionals to focus on higher-value work. For AI to reach its full potential in promoting equity, women must actively participate in its development and implementation, ensuring these technologies are built with diverse perspectives for unbiased outcomes.

South Florida's condo market is bracing for a significant reset, with prices in eastern areas expected to drop 38% over the next few years, according to Peter Zalewski, founder of Miami Condo Investing Club. Overinflated by the pandemic, prices could revert to 2019 levels, driven by stricter building inspections, rising interest rates, and shifting tech worker migration patterns. Zalewski warns of a "cliff" in condo sales, with November 2024 seeing a 19.6% year-over-year decline—the worst since the 2008 financial crisis.

While older condos face steep value losses due to uncertainty and special assessments, newer units have appreciated by 10%, according to ISG Group's Craig Studnicky. Despite challenges, high-income households continue to flock to South Florida, maintaining demand for newer, luxury developments, even as concerns about sinking buildings and supply constraints linger.

Mixed-use developers are redefining the retail landscape by prioritizing quality over quantity and creating spaces that emphasize experiences and engagement. At the recent ICSC event in New York City, industry leaders highlighted the need for thoughtful design tailored to consumer demands. “One size no longer fits all,” said Brandon Eisner of Newmark, emphasizing the importance of curating dynamic, customer-centric spaces.

Key trends shaping the future include catering to Millennials and Gen Z, who crave unique, in-person experiences that go beyond the transactional. Developers are also focusing on creating vibrant gathering spaces—think pickleball courts, green areas for yoga, and entertainment venues—to foster community connections. Additionally, the renewed focus on wellness is driving innovation, from fitness classes and medical services to amenities like e-bike access. As John Fahey of SRS Real Estate Partners noted, success lies in embracing fresh, creative concepts that ensure long-term vitality for mixed-use centers.

Gordon Brothers is offering Big Lots leases for sale nationwide, presenting a golden opportunity for retailers looking to expand. Spanning 47 states, these shopping center locations range from 19,000 to 55,000 square feet and feature long-term, below-market rents. Interested buyers have until January 24 to make offers.

“This is the perfect chance for retailers to grow their footprint with well-located, turnkey spaces,” said Michael Burden, co-head of North America real estate at Gordon Brothers.

Earlier this month, Gordon Brothers helped Big Lots avoid liquidation through a strategic sale, keeping hundreds of stores open and preserving thousands of jobs. Variety Wholesalers acquired over 200 Big Lots locations and plans to continue operations under the brand name, supported by Gordon Brothers’ ongoing real estate services. This comprehensive strategy allows Big Lots to transition smoothly while retaining its legacy and serving customers nationwide.

Macy’s is closing 66 stores across 22 states as part of its “Bold New Chapter” strategy to streamline operations and focus on high-performing locations. California and New York will see the highest number of closures, including the historic Wanamaker building store in Philadelphia.

While the closures mark a significant shift, Macy’s plans to invest heavily in 350 “go-forward” stores by 2026, building on the success of its initial pilot locations, which have driven consecutive sales growth and record customer satisfaction. “We are prioritizing resources to elevate the shopping experience where it matters most,” said CEO Tony Spring.

With these strategic changes, Macy’s aims to position itself for sustainable growth, focusing on fewer but more impactful locations while enhancing its digital channels.

Service-based retailers have taken the lead in acquiring retail real estate for the first time, according to CoStar’s latest report. Foodservice tenants dominated the scene, accounting for over 20% of leasing activity in 2024, with fitness brands and health care and education tenants following close behind.

Brandon Svec, CoStar’s national director of retail analytics, attributes this shift to pandemic-era adaptations and changing consumer priorities. Restaurants adapted to takeout and delivery during lockdowns, and post-pandemic dining out became a favored “affordable luxury.” Meanwhile, fitness centers, once overlooked due to parking concerns, are now star tenants driving traffic to neighborhood centers. “The TikTok generation has made fitness a key part of their personal brands,” Svec noted.

Demographics also play a role, with declining marriage and birth rates giving younger consumers more disposable income, which they’re channeling into experiences like dining, fitness, and pet care. It’s a new era for retail real estate, driven by lifestyle trends and evolving consumer habits.

Retail visits in 2024 saw modest growth, increasing 0.4% year-over-year, with seven months recording gains, according to Placer.ai’s Retail Foot Traffic Recap. March (+3.2%), August (+2.5%), and February (+2.4%) led the charge, while categories like discount & dollar stores (+2.8%) and superstores (+1.7%) outpaced overall growth, highlighting consumer demand for value. Beauty & spa (+1.6%) and clothing (+1.5%) also showed positive trends, while furniture & home furnishings rebounded strongly in Q4 (+3.5%) after a tough start.

State-level standouts included Maine (+2.2%) and North Dakota (+2.0%), where domestic migration and value-focused retail played key roles in boosting foot traffic. However, electronics (-3.5%), pet stores (-2.9%), and pharmacies (-2.1%) faced notable declines, reflecting evolving consumer priorities.