Fresno Commercial Office Space for Rent

Q4 2025

Fresno Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Fresno commercial real estate (CRE) market is demonstrating resilience and adaptability in late 2025, driven by its strategic location and growing population. The Office sector faces headwinds with vacancy near 10%, though demand for smaller, flexible spaces remains steady [1]. Industrial markets are normalizing after a period of rapid growth, with vacancy ticking up to 7% as new supply enters the market [2]. Retail is thriving, with low vacancy and strong demand for neighborhood centers [3]. Multifamily is tightening as construction slows, supporting rent growth and high occupancy [4, 5].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days (133 total deals):

  • Retail/Storefront led market activity with 61.65% of all searches [7].
  • Warehouse was the second most active sector at 30.83% [7].
  • Office accounted for 7.52% of total search volume [7].

Office Market

Market Overview Fresno's office market is navigating a period of adjustment, with vacancy rates elevated but leasing activity showing signs of life, particularly for smaller, high-quality spaces.

  • Vacancy & Availability: The overall vacancy rate stands at approximately 9.8%, slightly higher than previous quarters but well below the national average [1]. Availability remains high as tenants right-size their footprints [1].
  • Net Absorption: Net absorption was slightly negative in Q3 2025, reflecting continued consolidation in the sector [1].
  • Rental Rates: Asking rents have held steady at $1.85 per SF (Full Service Gross), with landlords offering concessions to secure tenants [1].
  • Market Drivers: TenantBase data indicates a preference for shorter lease terms, with 40.00% of office inquiries seeking leases of Less than one year [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 7.52% of total search volume [7].
  • Lease Term Preference: Demand is skewed toward short-term flexibility:
    • Less than one year: 40.00% of deals [7].
    • 5+ Years: 30.00% of deals [7].
    • 1-2 Years: 20.00% of deals [7].
  • Size Requirements: Tenants seeking 1-2 Year leases have an average lower size requirement of 1,200 SF, reflecting a need for flexible, small-scale office solutions [7].

Industrial & Warehouse Market

Market Overview The Fresno industrial market remains a bright spot, benefiting from its central location and lower costs relative to coastal markets.

  • Vacancy & Rent: Vacancy rose to 7.0% in Q3 2025, up from 4.5% a year prior due to new deliveries [2]. Asking rents have stabilized at $0.85 per SF (NNN) after a period of rapid growth [2].
  • Demand & Supply: Leasing activity is steady, with 3PLs and distribution users driving demand [2]. The construction pipeline is active but moderating, which should help keep vacancy in check moving forward [2].
  • Leasing Highlights: TenantBase data shows steady demand for mid-term leases, with 1-2 Years being the most popular term for warehouse users [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 30.83% of total search volume [7].
  • Lease Term Preference: Demand is spread across lease terms:
    • 1-2 Years: 42.11% of deals [7].
    • 3-5 Years: 26.32% of deals [7].
    • 2-3 Years: 21.05% of deals [7].
  • Size Requirements: The average lower size requirement for warehouse space is 2,500 SF for 1-2 year terms, while larger requirements for 2-3 Years averaged 5,000 SF [7].

Retail Market

Market Overview Fresno's retail sector is thriving, with limited new construction driving vacancy to historic lows and supporting rent growth.

  • Vacancy & Availability: The retail vacancy rate remains low at 4.2%, with prime corridors seeing strong demand [3].
  • Rental Rates: Asking rents increased 3.1% year-over-year to $1.65 per SF (NNN), reflecting strong landlord leverage [3].
  • Construction: New retail development is minimal, with only 150,000 SF under construction, further tightening the market [3].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 61.65% of all search volume [7].
  • Lease Term Preference: Retail tenants show a balanced appetite for terms:
    • 3-5 Years: 30.00% of deals [7].
    • 1-2 Years: 25.00% of deals [7].
    • 2-3 Years: 17.50% of deals [7].
  • Top Locations: Tenant interest is highest in Fresno (20 deals) and Visalia (8 deals) [7].

Multifamily Market

Market Overview The multifamily market is stabilizing as the supply wave crests, with occupancy remaining high and rent growth returning to normal patterns.

  • Vacancy & Occupancy: Vacancy held steady at 4.8% in Q3 2025, with occupancy rates consistently above 95% [4, 5].
  • Rents: Average asking rents rose 2.5% year-over-year to $1,450 per unit, driven by demand for affordable housing options [4].
  • Construction: The construction pipeline has shrunk to 1,200 units, a significant decrease from previous years, which will support tighter conditions in 2026 [5].
  • Investment: Sales activity remains cautious, but pricing has stabilized, offering opportunities for investors seeking steady yields [4].

2026 Outlook

Looking ahead to 2026, the Fresno market is positioned for steady performance and gradual growth.

  • Industrial Strength: With a moderating construction pipeline and steady demand, the industrial sector is expected to see continued rent growth and low vacancy [2].
  • Retail Resilience: The lack of new retail supply will keep vacancy low and rents rising, making existing centers highly valuable [3].
  • Office Stabilization: While challenges remain, the office market is expected to find a floor as tenants take advantage of favorable terms and right-size their space needs [1].

Sources

  1. Newmark: Fresno Office Market Overview Q3 2025
  2. Newmark: Fresno Industrial Market Overview Q3 2025
  3. Marcus & Millichap: Fresno Retail Market Report Q3 2025
  4. Yardi Matrix: Fresno Multifamily Market Report – September 2025
  5. Berkadia: Fresno Multifamily Report Q3 2025
  6. The Business Journal: Fresno Real Estate Market Outlook 2025
  7. TenantBase Proprietary Market Data (Fresno - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.