CBRE’s new report on the market outlook for U.S. real estate in 2025 presents a picture of cautious optimism with both opportunities and risks for investors.

It predicts investment sales will continue to recover, boosted by strong economic growth, with volume up by as much as 10% next year. However, investors will remain careful. Primary targets will be industrial and multifamily assets. “Assuming minimal disruptions from tariffs, retail will continue to attract investors with its strong fundamentals and we expect some portfolio sales will ensure a robust year for this property type,” the report commented.

At the same time, it said investors may have to confront headwinds. These include 10-year Treasury yields likely to remain above 4% due to a persistently large budget deficit, stimulative fiscal policy, and the potential for higher inflation.