NAR’s Q3 Commercial Real Estate Demand Index shows faster industrial hiring lifting markets such as San Antonio, Seattle and Nashville.
Industrial hiring emerged as a key driver of commercial real estate demand in select markets, according to the National Association of Realtors (NAR) Q3 2026 Commercial Real Estate Demand Index, released November 4.
Industrial employment stayed relatively flat nationally, but faster job growth in manufacturing, transportation and warehousing lifted some markets. Of the 306 metros tracked, 143 scored above 100, the average metro score.
St. George, Utah, kept the top spot at 132, followed by Huntsville, Alabama, at 125. Miami, New York, Los Angeles and San Francisco stayed below average.
“The story this quarter is where companies are hiring,” says Nadia Evangelou, principal economist and director of real estate research at NAR. San Antonio jumped from 76th to 9th in one year, the largest increase of any market.
Seattle rose from 146th to 44th, and Nashville advanced from 73rd to 20th. Leisure and hospitality employment grew in about two thirds of metros, while retail trade employment lagged.
“Two markets can have similar vacancy rates and rent growth, but very different underlying demand,” Evangelou says. “Looking at where jobs are growing helps us understand where commercial real estate demand may be heading.”