Capitalizing on Dynamics: Demographic Mega-Trends Impacting CRE

The first use of the rhetorical flourish “demography is destiny” is commonly attributed to the French philosopher and father of sociology, Auguste Comte.[1] He argued that the size and composition of a country’s population will determine its future.

This is certainly true in 2025, as there are major demographic trends impacting the economy and, as a corollary, commercial real estate (CRE). These “megatrends” include a stagnant-to-declining working age population, recent unprecedented immigration (and the curtailment or even the reversal of the same), domestic migration to the Sunbelt and the Intermountain West, and inter-metro migration from the urban core to the suburbs and exurbs.

Additionally, the astounding number of remote workers are influencing geographic demand drivers, while the great number of people living alone and/or without children has implications for apartment demand.

Finally, the aging population is creating an amplified demand in several sectors including medical office buildings (MOBs), age-restricted 55+ communities, independent living facilities (ILFs), and assisted living facilities (ALFs).

CRE investors and developers who understand the nuance and the metros