In fourth quarter 2025, commercial real estate markets began to experience normalizing liquidity conditions across several key indicators, 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, reports a liquidity score of 54.5 in fourth quarter, surging from the previous quarter’s reading of 35.6. This marks a seventh consecutive quarter of improvement and the MRELI’s highest point since first quarter 2022 — just as the Federal Reserve began raising interest rates.
The improvement was driven by private market commercial real estate transaction volume, which increased in both the United Stats and European Union in the fourth quarter. Pricing metrics also continued to improve in the fourth quarter in both the public and private markets, though at a slower pace.
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