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CRE Poised for Recovery in 2025, Colliers Says

Four key trends are shaping the industry. 

By Kristen Smithberg | December 19, 2024 at 06:35 AM

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.

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