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.

Specifically in the debt capital markets, Millon said that he expects the return of big commercial banks and U.S. money center banks in the market to continue into 2025, kickstarting bilateral transactions and financing activity. Multifamily, industrial, self-storage, data centers and grocery-anchored retail are all liquid asset classes that have seen an uptick in bank interest that is expected to continue this year, he said.