Commercial real estate markets continued to experience normalizing liquidity conditions across several key indicators in third quarter 2025, according to the latest reading of the Madison Real Estate Liquidity Index (MRELI) from Madison International Realty.
The index, which measures the ease with which asset owners and investors are able to enter and exit real estate limited partnerships, reported a liquidity score of 35.6 for third quarter 2025, marking a sixth consecutive quarter of improvement and the MRELI’s highest point since first quarter 2022 — when the Federal Reserve began raising interest rates.
While conditions do not reflect a fully normalized real estate capital market — which would typically see index readings in the 40s and 50s — Madison has observed a consistent improvement in real estate liquidity conditions since the beginning of 2024, with index readings jumping by nearly 80 points in under two years.
“After the worst period of ill
