The decline reflects a measured pullback in construction exposure despite stable credit performance.

Supply contraction outpaces demand as deliveries fall, construction slows and vacancy stabilizes.

San Francisco and San Jose lead a small group outperforming national trends.

Berkadia Research finds rent gains concentrated in markets with limited new deliveries.

Leasing momentum is recovering, while a tenant flight to newer facilities is reshaping vacancy dynamics.

Capital is increasingly flowing toward power-secured assets.

Vacancy is expected to climb higher than previously projected amid excess supply and softer hiring.

New suburban enclaves, urban redevelopment zones and affluent growth corridors are reshaping the housing landscape.