CRE Market Anticipates Busier Second Half Despite Ongoing Uncertainty

Strategic Insights -

The commercial real estate (CRE) market is gearing up for a more active second half, according to a recent survey by LightBox, a leading provider of CRE data and technology. Despite growing uncertainty around interest rates, tariffs, and economic volatility, most industry professionals anticipate a busier second half, with 76% expecting deal activity to either increase or hold steady through the remainder of the year. The survey highlights a mix of resilience and caution as defining characteristics of the market, with respondents showcasing a guarded optimism amidst pricing pressure.

Key Takeaways:

  • 76% of industry professionals expect deal activity to either increase (42%) or hold steady (34%) through the remainder of the year.
  • Interest rates remain the top concern, followed by economic volatility and emerging tariff risks.
  • The survey captured sentiment on pricing, capital availability, distress, and investment opportunities from 237 professionals across investment, brokerage, appraisal, and environmental due diligence.
  • Respondents highlighted a mix of resilience and caution as defining characteristics of today's market.
  • The market is driven by math, not mood, with participants staying disciplined despite ongoing uncertainty.
  • Investor appetite remains strongest in the multifamily, industrial, and retail sectors.
  • Outside of the major asset classes, 56% of brokers and investors identified niche asset classes like data centers and life sciences as strong investment opportunities.
  • While CRE capital is still constrained, expectations for modest rate cuts and improving pricing clarity could support increased lending and investment activity heading into Q4.

Statistics:

  • 76% of industry professionals anticipate a busier second half, with 42% expecting deal activity to increase and 34% expecting it to hold steady.
  • 40% of respondents believe values have stabilized, while 60% see more room for prices to fall.
  • 40% report rising signs of distress, particularly in urban offices.
  • A majority (60%) cited the lack of movement in interest rates as the most significant factor slowing transaction activity and delaying improvement in pricing clarity.
  • Nearly 70% of respondents agreed that the market will "soldier on" through the second half, as long as deals pencil out.
  • 56% of brokers and investors identified niche asset classes like data centers and life sciences as strong investment opportunities.
  • Over 30,000 customers rely on LightBox for commercial real estate intelligence.

Sources:

LightBox, "CRE Market Anticipates Busier Second Half Despite Ongoing Uncertainty," August 4, 2025

LightBox, "Survey Results: CRE Market Anticipates Busier Second Half," mid-July 2025

LightBox, "About LightBox," accessed August 4, 2025