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.