Salem’s economic picture, as described Thursday at the Capacity Commercial Real Estate Economic Forum, came through as a blend of stability and constraint: steady demand in parts of the market, limited new supply in others, and a common warning that timelines and costs, especially for tenant improvements and permitting, are reshaping what deals can realistically get done.
Mayor Julie Hoy framed the event as a call for cross-sector collaboration, telling attendees that “regional economic strength does not happen by accident,” and arguing that sharing data and ideas helps the region respond faster to change. “By sharing data, ideas, and challenges in forums like this, we accelerate our collective ability to respond to change and seize opportunity,” Hoy said.
The forum’s format centered on sector presentations, followed by audience questions. Retail, multifamily and residential construction drew some of the most pointed discussion, as speakers connected day-to-day project decisions to larger constraints: security costs showing up on expense sheets, construction budgets that can break a deal, and a permitting timeline that can make even straightforward tenant moves unpredictable.
Retail
Retail activity in Salem, as presented by Capacity Commercial’s Nick Williams, leaned toward a cautiously optimistic read: more leasing deals were completed in 2025 than the year before, average starting rents moved higher, and a major share of small deals came from The Forge, a multi-tenant project that Williams described as a major driver of the year’s numbers…