2025 MidYear Outlook Report

Total U.S. commercial real estate volume was $100.6 billion in 1Q25, up 14% year-over-year and individual asset sales were up 24% year-over-year, although both figures are below pre-pandemic levels. Retail assets performed the best, followed by industrial, multifamily and suburban offices while CBD office properties lagged behind, according to MSCI Real Assets.

Making Concessions to Close Deals

CRE activity has increased as buyers and sellers have moved closer together on transactions than at any point in the past 18 months. While challenges such as high interest rates, tariff uncertainty, construction costs, and labor issues still persist, many sellers who were waiting for conditions to improve have adjusted their expectations – and pricing – while buyers have found creative ways to close deals.