Investors in commercial real estate have taken a solid approach to the November election and interest rate cuts after a burst of activity in September. According to the LightBox CRE Activity Index, while market fundamentals remained mixed in October, high-demand sectors like multifamily and industrial continued picking up steam despite a modest 2.3-point dip to 95.9 from September.

The fall in commercial real estate activity comes as investors mull the economic landscape following November's election and the potential for additional cuts to interest rates later this year, but LightBox said that activity was still significantly higher than a year ago.

"After a slow start to 2024, some investors are actively shopping for opportunities while others are waiting until later in the rate-cutting cycle," the report said. "There are also signs of the lending wheels beginning to turn, but it will likely take several more rate cuts for the debt market to show any significant signs of improvement. Property prices are also beginning to stabilize and even rise in some sectors, marking a significant pivot point in the market cycle and signaling to investors that the time to move may finally be here."