Market Summary 10.13.25

Four Reasons CRE Deal Flow Is Poised to Accelerate

Commercial real estate deal flow is showing signs of revival as several converging forces begin to unlock capital and confidence across the market. After an extended slowdown marked by high borrowing costs and valuation gaps, the landscape is shifting toward renewed activity. Declining interest rates are a primary catalyst—lower financing costs are making acquisitions and refinancing more viable, encouraging both buyers and sellers back to the table. Improved macroeconomic stability and clearer monetary policy direction are also boosting investor confidence, narrowing bid-ask spreads and helping deals that were previously stalled begin to move forward.

At the same time, liquidity is re-entering the market. Institutional investors, private equity, and 1031 exchange buyers who had paused allocations are now seeking opportunities to deploy capital before competition intensifies. The buildup of “dry powder” over the past two years is positioning the market for a potential surge in transactional volume. In parallel, the underlying fundamentals of many property types—particularly industrial, multifamily, and necessity-based retail—remain strong, supported by stable rent growth, high occupancy, and limited new construction. These factors provide a durable foundation for renewed investment momentum.

However, the recovery will likely be uneven. Certain segments such as office and high-leverage developments may continue to face headwinds, while stabilized assets and well-located properties are expected to lead the resurgence. Lenders are gradually loosening underwriting standards as risk appetite improves, but discipline remains high amid lingering economic uncertainty.

Looking ahead, the next phase of the cycle appears poised for acceleration. If interest rates continue to trend lower and capital markets stabilize, transaction volumes could meaningfully rebound over the next several quarters. For investors, this environment presents a window to reposition portfolios—acquiring quality assets at recalibrated pricing before increased liquidity and competition drive valuations higher. Those who act early may be best positioned to capture the upside of a market on the verge of renewed deal flow.