Even as multifamily fundamentals have softened seasonally, Class A units led a growing swell of momentum marked by stronger occupancy and falling concessions, according to data from Cushman & Wakefield's 144,000-unit portfolio.
Class A occupancy trended up 25 basis points during the fourth quarter compared to Q4 2024, a notable tightening given the slew of deliveries over the past two years. Income growth has doubled rent growth since 2023, meaning renters are more qualified than ever. That dynamic has fueled "filtering up," as tenants trade up the quality spectrum when their leases come due, Cushman & Wakefield said.
Concession usage among Class A units also showed meaningful improvement. While the overall amounts ticked up through the fourth quarter, they retreated in December, with Class A seeing the largest drop among property types, falling by 40 bps. Class B still represents the lowest concession usage. Cushman & Wakefield noted that as lease-ups stabilize, concessions are expected to pull back further, with the Class A segment leading the way.
Leasing demand across all property types showed modest improvement as the year closed. Historically, the fourth quarter is the slowest leasing period, but Cushman & Wakefield's indicators suggest demand will be slightly higher than in previous years. Overall contacts, visits, and applications were up 5% collectively in December compared with the prior year. Of these metrics, contacts — the top of the leasing funnel — led the increase, signaling that the spring leasing season may already be gaining momentum.
Headline lease trade-outs slowed throughout the fourth quarter, in line with asking rent growth, as owners prioritized occupancy amid concerns about an economic slowdown. However, in December, the trend began to reverse within Cushman & Wakefield's portfolio. While new lease trade-outs remain negative, they were less negative than in the previous two months, with Class A leading the recovery. This marked the first time Class A outperformed other property types, reflecting stronger occupancy gains throughout 2025.
Renewals and total lease trade-outs followed a similar pattern, with Class A again leading the gains. As 2026 unfolds, Cushman & Wakefield expects stronger occupancy trends and sustained demand to reinforce the role of quality as a defining strategy for multifamily owners and investors.
The insights come from Cushman & Wakefield's portfolio of more than 144,000 managed units nationwide.
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