The commercial real estate capital markets are in a much better operating environment to start 2025 than they were versus this time last year. The reasons for this are numerous, including a short-term rate-cutting cycle that is helping keep floating rate debt and rates around 4% to 4.25% on the long end of the curve, which is allowing for improved activity, said James Millon, president of U.S. debt and structured finance at CBRE.

“We're in a better position to actually meet the market and have the creative leverage to unlock some disposition activities, which I expect to continue into 2025,” said Millon.

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