Real Estate Market Update: 2024 Recap and 2025 Outlook
Uncover the latest trends, challenges, and opportunities in the commercial real estate industry.
The commercial real estate market experienced significant shifts in 2024, primarily driven by monetary policy decisions and evolving economic conditions. As the Federal Reserve implemented rate cuts to stimulate economic growth, investor confidence has increased. However, uncertainty surrounding the new administration’s policies and the potential for a prolonged period of higher interest rates have tempered this optimism.
This report covers the interplay between monetary policy, economic uncertainty, and the CRE market. We analyze the impact of President-Elect Trump’s policy proposals, particularly tariffs, on the broader economy and its implications for the industry. In addition, we examine the office market's specific challenges, including rising delinquencies, maturing loans, and the impact of remote work trends.
To provide a comprehensive overview, EisnerAmper has partnered with Trepp to analyze various data points, including sales volume, valuation metrics, and lending activity. By focusing on key geographic regions, we aim to uncover regional trends and disparities within the national CRE market.
Through this in-depth analysis, we hope to provide valuable insights for investors, lenders, and industry professionals.