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CRE Lending Set to Rebound in 2025

But not across all sectors.

By Mario Marroquin | December 19, 2024 at 06:36 AM

While the commercial real estate market is set for a lending rebound in 2025, not all sectors are primed for a quick recovery. James Millon, CBRE’s President of U.S. Debt and Structured Finance, predicts that liquidity will flow back into stronger asset classes like multifamily, self-storage, and grocery-anchored retail. However, smaller asset types and those heavily exposed to regional banks will likely take longer to regain momentum.

Cap rates have improved across all asset classes over the last 12 months, signaling more attractive pricing for investors. Meanwhile, a record amount of “dry powder”—capital sitting on the sidelines—could inject fresh energy into lending activity as we head into 2025.

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