The Market in the Rearview Mears
2025 Commercial Real Estate Outlook: Strategic Opportunities Ahead
By Bill Mears
The past is prologue
While 2024 saw our market sales decline to $108M from $157M in 2023, evolving monetary policy and legislative clarity are creating a more favorable investment landscape for 2025.
Key Market Trends
The small-space segment dominates current demand, with strong leasing activity in the 1,000-5,000 SF range. Retail remains competitive due to limited inventory and robust consumer spending, while properties exceeding 100,000 SF face higher vacancy rates. The multifamily sector continues to perform well, primarily through existing property transactions.
Investment Strategy for 2025
While a sharp rebound isn't expected, strategic opportunities exist in:
Growth markets driven by business expansion, healthcare, and education development Well-located older properties offering value-add potential Distressed assets, as significant CRE loans mature in 2025
Success in 2025 will require looking beyond traditional metrics to focus on fundamentals like rental growth potential and sustainable NOI improvements. Recovery will vary by location and asset class, with high-demand markets likely to see faster cap rate compression.
Download our comprehensive Coldwell Banker Commercial® 2025 Outlook Report for detailed market analysis and sector-specific insights to inform your investment decisions.
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