The CRE outlook for 2025 appears far more optimistic than it did a year ago after several significant headwinds that plagued the industry during the first two-thirds of the year have subsided. This is according to Colliers’ 2025 CRE outlook, which noted interest rate cuts, less political turbulence than expected and increasing activity in multiple property types in recent months bode well for the industry.
Some supply and demand realignment remains and is expected before the second half of next year, Colliers said. Office visits remain below pre-pandemic levels, but return-to-office mandates are gradually boosting occupancy rates. Net absorption has turned positive but hasn’t firmly stabilized yet, and a surge in development has pushed vacancy rates up more than 250 basis points.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
