After a strong start to 2025—with the most office leasing activity since 2019—the fragile rebound in the U.S. office market is facing fresh headwinds. Rising fears of a recession and Trump’s tariff push are shaking business confidence, causing some companies to pause leasing plans just as momentum was building.

Higher tariffs could spark inflation and interest rate hikes, slowing new development and complicating long-needed conversions of outdated office buildings. Cities, still reeling from pandemic-era vacancies, risk further setbacks as financial uncertainty makes both tenants and lenders nervous.

As one expert put it: “Uncertainty is the kryptonite of the commercial real estate market.”

With Party City out of the game, Michaels is making a bold move to become the go-to destination for all things party. The retailer is expanding its balloon and party supply offerings, rolling out over 300 new balloon options and increasing party products by 200% this August.

Michaels is also enhancing in-store experiences with bookable birthday parties, grab-and-go balloon bouquets, and creative events like “MakeBreaks” and “Safari Saturdays” for kids. After hosting nearly 5,000 parties in 2024, Michaels is doubling down on its mission to help customers celebrate, craft, and connect—all under one roof.

Construction material prices rose for the third straight month in March, with commercial construction inputs jumping 0.9%. Prices are now up nearly 43% since early 2020. While crude petroleum costs dipped, that was outweighed by sharp increases in natural gas, steel, copper, and lumber.

ABC’s chief economist warns that if these rising costs continue, they could start delaying or derailing projects — even with contractors still busy for now.

The federal government’s cost-cutting drive, led by Elon Musk’s Department of Government Efficiency (DOGE), is hitting Vermont—hard. Leases for three federal buildings in Barre, Burlington, and St. Johnsbury have been terminated, with DOGE claiming over $260,000 in savings. Meanwhile, a broader federal plan to offload “non-core” properties could affect more Vermont locations, including the Social Security office in Montpelier and the historic Customs House in St. Albans.

Despite a return-to-office push, the government continues to shrink its real estate footprint, leaving Vermont landlords in limbo. With office vacancies already hovering around 12% and rising interest rates discouraging lending, the local commercial market is feeling the squeeze. Small office spaces under 5,000 square feet may still move—but uncertainty looms for larger leases and federal tenants.

Indoor malls are making a surprising comeback. After years of trailing behind open-air and outlet centers, enclosed malls saw a 1.8% rise in foot traffic this March, surpassing their open-air counterparts. The rebound, driven in part by younger and more affluent shoppers, suggests a renewed interest in the classic indoor mall experience.

Placer.ai credits this shift to consumer confidence and revitalization efforts at top-tier malls, including major investments like Walmart’s and Simon’s acquisitions. Still, visit durations remain shorter than pre-pandemic levels across all mall types—proof that the retail landscape is evolving, but hasn’t fully bounced back just yet.

Palm Beach, long a favorite of wealthy Northeasterners, is now seeing a wave of California transplants drawn by sun, savings, and opportunity. Agents report an unprecedented influx of West Coast buyers, from billionaire tech moguls to fire-displaced residents, all seeking refuge from California’s high taxes, politics, and natural disasters.

Notable names like Larry Ellison, Sylvester Stallone, and the Hilton family have made high-profile moves, helping put Palm Beach on the Silicon Valley radar. With zero state income tax, a booming real estate market, and major investments in business infrastructure like “Wall Street South,” Palm Beach County is quickly becoming the next elite hub for tech and finance.

As Party City fades, dollar stores are seizing the moment, expanding their party and celebration offerings to attract deal-hunting shoppers. Dollar General, Five Below, and Dollar Tree are ramping up inventory for holidays, birthdays, and special occasions, ensuring consumers have affordable ways to celebrate. With economic uncertainty and tariffs looming, budget-conscious parents may increasingly turn to these retailers for party essentials, reinforcing their role as go-to destinations for festive shopping.