Steven Hatfield, senior analyst at CoStar Group, sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Hatfield discussed how commercial real estate transactions are increasingly being evaluated on a deal-by-deal basis, prompting market participants to rely more heavily on macro-level data across sectors. He noted that underwriting today often requires a broader view of market conditions rather than a narrow focus on individual assets.
Using the office sector as an example, particularly in the Dallas-Fort Worth metro, Hatfield pointed to a notable pullback in new construction activity. With fewer projects moving forward, the supply of Class A office space is tightening. He added that when new development does occur, it is increasingly concentrated in dense, urban environments and frequently incorporates mixed-use components such as residential or retail uses.
“Transactions are really happening on a deal-by-deal basis right now, which means data and a broader macro view of the market are becoming far more important across all commercial real estate sectors,” Hatfield said.
Hatfield also addressed the disconnect between headlines and performance in the retail sector. While much of the coverage has focused on bankruptcies and closures, he explained that the data tells a more nuanced story. As foreclosures and bankruptcies occur, new opportunities are emerging for retailers and operators that previously lacked access to certain markets, creating a more competitive landscape.