So here we are, the last month of 2025.
Soon, families across Southern California will be lighting candles, trimming trees, gathering for Hanukkah, Christmas and Kwanzaa, and counting down the seconds to a brand-new year. It’s a festive season, one that always seems to arrive earlier and earlier, but I digress.
December also brings something else: perspective. A reminder that 2026 will be here before you know it, and with it a new set of opportunities and challenges for commercial real estate owners and occupants.
While many industries begin to slow down as the holidays approach, December is one of the most consequential months of the year for anyone who owns, leases, manages or invests in commercial property. The final weeks of the year serve three essential functions:
Planning ahead
This is the time when landlords evaluate rent rolls, upcoming renewals, debt maturities and operating expenses. They also make strategic decisions for the coming year.
Occupants, meanwhile, revisit headcount projections, space needs, and whether their current footprint still aligns with how they operate in a post-pandemic hybrid world.
In short, December is when next year’s real estate strategy is set into motion.
Recap 2025
Every year tells a story, and 2025 was no exception.
For owners, rising construction costs, fluctuating interest rates and evolving tenant expectations shaped the narrative.
For occupants, efficiencies, supply-chain recalibrations and shifting labor patterns influenced real estate decisions.
A December recap helps frame what worked, what didn’t, and what trends are likely to carry into 2026.
Preparing for big deadlines
From tax planning to lease notice periods to budgeting cycles, December is full of dates that matter.
Missing one can mean financial consequences or missed opportunities well into the New Year. Many companies don’t realize that decisions made (or delayed) in December often determine whether next year’s real estate costs rise gently, or spike dramatically.
As we turn the page on 2025, December offers a rare moment to pause between what was and what will be. Whether you own commercial real estate or occupy it, the decisions you make in these final weeks set the tone for the year ahead.
Take the time to assess, adjust, and anticipate. With thoughtful planning and a clear-eyed view of the market, 2026 can be a year of opportunity rather than uncertainty. Until then, may this holiday season bring you peace, perspective, and a prosperous start to the new year.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
