
Office Space Requirements Tumble in April as Markets React to Tariff Uncertainty
Wednesday, June 18, 2025
Atlantic Commercial Group (ACG) has been at the forefront of land acquisition, site development, and commercial real estate growth for nearly 25 years. We have played a pivotal role in developing commercial land parcels and have been Walmart’s exclusive broker, successfully completing 52+ transactions across South Florida.
We have worked with top national brands, including:
✔ Retail & Restaurant Chains – CVS, Walgreens, McDonald’s, Burger King, Mattress Firm
✔ Financial Institutions – PNC Bank
✔ Medical & Service Providers – DaVita Dialysis
✔ Fuel & Convenience Brands – RaceTrac
From site selection to feasibility analysis, ACG provides expert guidance at every stage of the land development process. Whether you’re looking to acquire land, develop outparcels, or build large-scale retail and office properties, we ensure efficient, cost-effective, and strategic development solutions.
✔ Deep Market Knowledge – We leverage insights into lease rates, construction costs, and site planning to maximize your investment.
✔ Expert Development Advisory – Our team has extensive experience in ground-up developments and property redevelopments across South Florida.
✔ Navigating Approval Processes – We streamline the zoning, permitting, and entitlement approvals required for seamless project execution.
✔ Proven Track Record – We’ve played a key role in major commercial projects across the region.
ACG has directly contributed to the success of numerous high-profile developments, including:
🏢 Kendall Mall
🏢 Northridge Shopping Center
🏢 Midtown Delray
🏢 Lauderhill Mall
🏢 Palm Aire Marketplace
🏢 Lake Park Shopping Center
🏢 Coral Palm Plaza
🏢 Royal Oaks Shopping Center
🏢 Somerset Shoppes
🏢 Catalina Center
Tenant demand for office space took a sharp downturn in April 2025, echoing the steep declines seen during the 2023 banking crisis, according to VTS Data. Leasing activity dropped in 17 of 19 major markets, with a 23.2% fall in tenant inquiries and a 26.4% plunge in square footage — the steepest since 2021. Analysts link this slowdown to economic uncertainty following new U.S. tariff policies. While some markets like Austin and suburban Maryland showed resilience, others, including Boston and Silicon Valley, were hit hard. Despite the grim numbers, history offers hope: office demand rebounded quickly in 2023, suggesting a similar recovery could be on the horizon — if policy conditions stabilize.
Franchise Group has officially emerged from bankruptcy as a leaner, debt-restructured company focused solely on two core brands: Pet Supplies Plus and Buddy’s Home Furnishings. After selling The Vitamin Shoppe and shuttering American Freight, the company has rebranded under a new parent entity, Fusion Parent, with the same leadership team in place. This streamlined structure allows the company to refocus on growth, with over 200 new franchise agreements already signed. While the path forward looks more stable, experts note that both remaining banners must sharpen their competitive edge to thrive in a challenging economy.
Tariffs be damned — retail is moving full steam ahead. Despite all the buzz about tariffs at this year’s ICSC Las Vegas, developers and retailers are largely shrugging off the uncertainty. Industry leaders say retailers simply can’t afford to pause expansion, with store openings planned years in advance. The consensus? Tariffs are just another hurdle, not a deal-breaker. Strong sales, aging store fleets, and limited high-quality retail space are driving urgency. Retailers with diversified supply chains are best positioned to weather the storm, and investor appetite remains strong as lenders return to the sector. As one exec put it: “We need 50 new stores — let’s go.”