In 2025, ORG sees itself poised for a period of opportunity, according to the firm’s outlook. While high interest rates remain an important factor to consider, capital markets will become more open due to the real estate industry adjusting to interest rates that are higher than the pre-pandemic era.
ORG believes that property type allocations may begin to shift away from overallocations to industrial real estate and into other property types.
Office remains a sector shrouded in uncertainty about the scale of future demand, however, ORG has noticed increasing transaction volume in the property type, indicating price discovery and seller capitulation may be a continuing theme throughout 2025.
The firm believes that income-generating strategies focused on open-air retail centers will be well positioned to achieve strong returns in the long run. Not only are retail assets priced at cap rates that offer a significant equity-risk premium, but they can also target Mi
