Investors Poised to Deploy More Capital in 2025: CBRE
(Image courtesy of CBRE)
CBRE, Dallas, said investors are gearing up to inject more capital into the U.S. commercial real estate market this year, driven by favorable pricing and despite the challenges posed by interest rate fluctuations.
The firm’s 2025 U.S. Investor Intentions Survey found investor optimism about the continued recovery of real estate market fundamentals, with 70% planning to acquire more assets in 2025 than last year. Investors are broadly positive about the overall market and even more so about their own plans, with 75% anticipating a rebound in their own investment activity by the first half of the year and over half already experiencing recovery.
“Investors are preparing to deploy more capital into the U.S. commercial real estate market this year, drawn by the attractive pricing environment and strong fundamentals,” said Kevin Aussef, Americas President of Investment Properties for CBRE.
Aussef noted investors are more optimistic about their own prospects compared with the broader market outlook, “viewing the ongoing reset in pricing as a key opportunity to secure a first-mover advantage as the recovery gains momentum.”
Top Markets for Investment, per the report:
Investors are strategically focusing on gateway markets and high-growth Sun Belt markets.
Dallas maintains its position as the most preferred market for investment for the fourth consecutive year, with Miami ranking second.
Boston emerges as an appealing market for investors, with Washington, D.C., and San Francisco also rejoining the top 10 most preferred ranking.
Sun Belt markets continue to draw interest, with Atlanta, Raleigh-Durham, Austin, and Phoenix all ranking in the top 10 due to their growth potential.
Preferred Property Types:
Multifamily remains the top target for investors by a wide margin, with 75% targeting this asset class, followed by industrial & logistics assets at 37%.
Retail is the third most favored property type, with an increased number of investors targeting the asset class compared with last year.
Office assets also gained investor interest due to more certainty about utilization rates and favorable pricing.
Investor interest in alternatives has declined this year likely due to investors becoming more enthusiastic about traditional commercial real estate assets due to repricing.
CBRE also noted investors are adjusting their strategies to align with the evolving market cycle, with two-thirds favoring value-add and core-plus strategies. “This indicates that investors are seeking opportunities that offer higher returns with lower risk amid a continued economic expansion,” the report said.
