U.S. commercial real estate investing is expected to increase in volume by 8 percent in 2025, according to a real estate capital flows report by CBRE. In 2025, activity has been slow due to high long-term bond yields and is expected to stay muted in the first half of the year.
Yields are expected to maintain their levels, due to inflation trends, policy uncertainty and budget deficits. After last year’s second half, North America, Europe and Asia Pacific saw the largest total cross-regional capital flow since 2022. While capital flows increase by 31 percent to $37 billion, volume was still much lower than its peak of $88.5 billion in the latter half of 2021. Inflows in the United States saw a jump of 40 percent year-over-year in the second half of 2024 to $9 billion.
The industrial and logistics sectors saw the largest portion of cross-regional investment for the fourth consecutive half-year period, at 47 percent. The office sector also saw high volumes of investment
