As 2024 comes to a close, the mood within the CRE market has shifted toward bullishness boosted by positive macroeconomic developments, accommodating financial policy changes and indications that a new growth cycle is beginning, according to Crexi’s Q3 National Commercial Real Estate Report.

“Our industry is amazingly resilient and sentiment has increased in the last quarter, despite some lingering headwinds,” said Crexi chief operating officer Eli Randel. “Sentiment keeps this market active as much as the crunched numbers, and we’re looking forward to an even more robust 2025.”

The Fed’s interest rate cuts are likely to have a major impact on the industry — specifically lowering borrowing costs and stimulating refinancing activity and new investments. Although there is still some uncertainty about the economy, Crexi said indicators suggest a bottom has been reached and point to early signs of growth in CRE. In addition to healthy buyer activity on its auction platform, bid-ask spreads have narrowed from the second quarter, average marketing periods are decreasing and opportunistic capital raising is starting to turn a corner, the firm said.