GlobeSt: BGO Chief Economist Predicts Brighter 2025 for CRE
BGO's Chief Economist, Ryan Severino, anticipates a more robust commercial real estate (CRE) market in 2025. He notes that, despite mixed signals, current data suggests improvement, with CRE fundamentals strengthening and any weaknesses stemming from increased supply rather than diminished demand. Severino highlights that the Federal Reserve's interest rate cuts are positively impacting CRE capital markets, leading to expectations that the sector will be in a stronger position by the end of 2024, setting the stage for further advancements in 2025.
This optimistic outlook is underpinned by measured yet notable enhancements across various property types and capital markets. Severino's analysis indicates that the combination of solid demand and favorable monetary policy is fostering a healthier environment for CRE. As the market continues to stabilize, stakeholders can anticipate a more vibrant and resilient CRE landscape moving into 2025.
