As we say goodbye to 2024 and look ahead to 2025, the Peoria commercial real estate market is
showing signs of cautious optimism. While the past couple of years has seen some uncertainty,
several emerging trends are shaping the outlook, particularly in office space, investment activity,
and outlying areas. Here at Joseph & Camper Commercial Real Estate, we’re excited to share our
insights into these shifts, and what they mean for the future of Peoria’s real estate market.
In 2024, one of the most notable trends has been the modest resurgence of office space demand,
particularly among smaller users. Areas like North Peoria and Peoria Heights are seeing renewed
interest from professional tenants, including lawyers, small medical practices, and other serviceoriented
businesses. These users are seeking office spaces ranging from 2,000 to 6,000 square
feet—sizes that strike a balance between the larger corporate footprints that have become less
popular post-pandemic and the increasingly fragmented demand of smaller, more flexible spaces.
What’s driving this demand? First, there is an ongoing need for physical office environments
where professionals can meet with clients, conduct business operations, and maintain a local
presence. Small businesses in these areas are feeling the push to expand, particularly as remote
work and hybrid schedules allow companies to be more selective about location and square
footage. Additionally, these areas offer competitive pricing, proximity to amenities, and access to
a high-quality labor force—making them appealing for professionals looking to make their mark
without committing to large, expensive office leases.
One of the more encouraging trends we’ve seen as 2024 winds down is a renewed confidence in
the Peoria real estate market among investors. After months of hesitation due to economic and
political uncertainty, a growing sense of stability is encouraging investors to re-enter the market.
This renewed activity is driven by the belief that the local market is positioned for growth in 2025
and beyond.
While some investors have remained on the sidelines for the past year, many are now seeing value
in both commercial and residential properties. In particular, investors are eyeing opportunities in
areas that are showing signs of revitalization, such as the Warehouse District and the suburbs,
where a growing demand for mixed-use developments and larger industrial facilities are fueling
interest. This increased investor confidence bodes well for the local real estate sector, as we move
into a new year of opportunity.
The Warehouse District of Peoria has long been a focal point for redevelopment efforts, and while
it hasn’t yet reached the critical momentum that some had hoped for, progress is becoming
increasingly visible. The area is seeing a growing number of smaller businesses and creative
tenants looking to occupy renovated industrial spaces. These tenants are attracted to the unique,
gritty charm of the district, combined with the proximity to downtown Peoria and the riverfront.
While this progress is encouraging, we’re still in the early stages of what will hopefully become a
thriving commercial hub. The potential for further growth in the Warehouse District is exciting,
especially as more investment is made into infrastructure and renovations, and local government
and private developers continue to work on bringing the district to life.
Another trend that has become more evident in 2024 is the increasing demand for retail,
commercial, and industrial space in the outlying areas of Peoria, such as Morton. The synergies
between a stable residential community, a major employer like Caterpillar, and the strategic
location along the interstate have made Morton a hotspot for new investments.
Precision Planting’s investment in the community has been a game-changer, with new jobs and
opportunities arising from its expansion. As more businesses look to locate near major employers,
Morton is benefiting from a rising demand for both commercial real estate and retail space.
Additionally, the area’s proximity to Peoria and its position on a major transportation corridor
make it an attractive location for companies looking to tap into the broader central Illinois market.
Looking ahead to 2025, Joseph & Camper is cautiously optimistic about the future of Peoria’s
commercial real estate market. As the region settles into a post-Caterpillar headquarters era, it is
embracing a new reality—one where smaller businesses, innovation, and regional employers are
playing an increasingly vital role in driving the economy. Notably, growing employers like OSF
HealthCare and the rise of Rivian in nearby Normal are attracting new residents to central Illinois,
which in turn is bolstering demand for commercial space in Peoria.
In conclusion, while there are still challenges ahead, the trends we’re seeing in the Peoria market
are positive. With an uptick in office demand, renewed investor confidence, and the exciting
developments in outlying areas, 2025 promises to be a year of continued growth and opportunity
for commercial real estate in Peoria.
At Joseph & Camper, we’re committed to staying ahead of these trends and guiding our clients
toward success. Whether you’re looking for office space, investing in property, or exploring new
opportunities in Peoria, we’re here to help you navigate the market with confidence.
5001 N. University St., Suite 201A, Peoria, IL 61614
Phone 309.691.5919 | josephcamper@gmail.com
© 2021 Joseph & Camper Commercial
