The economic landscape has shifted significantly and as a result, the commercial real estate industry is poised for a turnaround in 2025 after two years of challenges and headwinds. Several indicators point to fair pricing of CRE assets and increased investor interest, which means a period of pronounced gridlock could be behind us.

According to Cushman & Wakefield global chief economist Kevin Thorpe, Fed rate cuts, the 10-year Treasury yield in the 4% range, and a flattening yield curve that is on track to uninvent this year are among the trends injecting optimism and confidence into the CRE market. In addition, lenders are re-engaging with the market, which is bringing down the cost of debt, and transactions are on the upswing as sellers are gradually capitulating and dry powder is coming off the sidelines, the report said.

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