Industrial Employment Emerges as Key Demand Driver of CRE Demand

Industrial employment growth has emerged as a key driver of commercial real estate demand in select markets, according to the National Association of Realtors’ (NAR) third-quarter 2026 Commercial Real Estate (CRE) Demand Index. Although 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 Q3, indicating stronger commercial real estate demand drivers relative to other markets. St. George, UT retained the top spot with a score of 132, followed by Huntsville, AL (125); Fayetteville-Springdale-Rogers, AR (123); Sherman-Denison, TX (123); and Ocala, FL (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.”