CRE investors foresee a sunny 2025 for the industry
Commercial real estate (CRE) investors expect 2025 to be a positive year for the industry. According to Goodwin's 2025 Outlook for Commercial Real Estate Survey, 61% of investors expect the commercial real estate market to be stronger in the next 12 months. About 73% of respondents also expect transaction activity to increase during the same period, as well as the availability of capital (58%) and cost of capital (52%).
Investor outlook by property type
The survey also found that 67% of investors view digital economy properties like data centers to be the best opportunities in the next year. Downtown office assets were also popular, with 39% saying they would be the second-best opportunities, a marked improvement in investor sentiment given that only 14% said so in 2024. Multifamily properties came in third with 30%.
What about AI?
AI continues to be top of mind for CRE investors. According to 31% of survey respondents, AI's most valuable real estate use case lies in property management and operations. Also, 24% ranked risk assessment and due diligence as the second most valuable use case.