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CBRE Foresees Cap Rates Compressing in 2025 While Risks Remain

Fiscal policy will also have some bearing on the cost of capital.

By Philippa Maister | December 13, 2024 at 07:08 AM

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.

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