2025 Commercial Real Estate Outlook

Turning the corner to capitalize on a generational opportunity.

The commercial real estate (CRE) industry has faced a myriad of uncertainties in recent years, primarily brought on by elevated interest rates and high inflation, shifts in how—and where—tenants occupy commercial space, the impacts of climate change on buildings, and the emergence of technologies like generative AI. Organizations have likely been taking more defensive postures—fortifying their balance sheets, shoring up core capabilities, and focusing inward—rather than being on the offensive.

This year’s commercial real estate outlook aims to help leaders turn the corner on the recent challenging years to better position their organizations for the road ahead. Thus, we explore what economic scenarios might need to play out for a CRE recovery; what investment opportunities might arise amid current bottom-cycle pricing dislocations; the growing financial imperative of investing in sustainable real estate strategies; what may be important to the next generation of real estate talent, and how their skills can adapt to changing business expectations; and if the industry is ready to implement artificial intelligence solutions for transformative change.