High rates, policy uncertainty lower commercial real estate growth expectations


High rates, policy uncertainty lower commercial real estate growth expectations


Key takeaways

  • For the first time in our survey, commercial real estate (CRE) investor optimism softened quarter over quarter (QOQ) amid expectations for higher-for-longer rates and policy uncertainty.
  • Overall market conditions declined or remained flat QOQ in every sector except Office. Investors remain most bullish on the Multifamily and Industrial sectors, though investor sentiment in both sectors is worsening for the first time in our survey.  
  • 42% of all CRE investors cite interest rates / access to capital as the biggest obstacle to their sector in 2025, followed by inflation / rising operating costs. Many investors also noted concerns regarding shifts in trade policy, federal employment, and immigration. 

The Burns + CRE Daily Fear and Greed Index, created in collaboration with CRE Daily, reflects sentiment across CRE sectors, including multifamily, industrial, retail, and office. This survey provides insight into whether values and development will likely increase or decrease and is one of the factors we consider when forecasting multifamily construction.


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RSK: Housing and retail outlook....not as exciting according to this author.

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- - Volume: 25 - WEEK: 13 Date: 3/25/2025 7:05:18 PM -