CRE Exchange: Commercial Real Estate, Property Valuations, Real Estate Analytics and Property Tax CRE’s mid-year earnings themes: Market insights across sectors and players
Aug 14, 2025
Dive into the bustling world of commercial real estate as the hosts explore the latest trends from Q2 2025 earnings. Discover how banks and non-banks are navigating lending in a cautious market. Learn about the resurgence of sectors like necessity-driven retail and data centers, while other areas like office space display mixed results. The optimistic shift in corporate earnings and evolving consumer behaviors also take center stage. Overall, the episode offers valuable insights and an encouraging outlook for the rest of the year.
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Diverging Lender Sentiment
- Bank lenders are cautious but see CRE exposure stabilizing with low single-digit growth in CRE loan books.
- Non-bank allocators are optimistic, saying CRE has likely bottomed and fundamentals are improving.
Retail Strength And Industrial Resilience
- Retail anchored by groceries and necessity tenants is outperforming with strong leasing spreads and raised guidance.
- Industrial leasing demand is solid and developers are restarting build-to-suit and spec projects as cap-rate spreads normalize.
Trophy vs Commodity Office Split
- Office is bifurcating: trophy assets in gateway submarkets recover while commodity office lags and is being sold off.
- Managers are recycling capital into top submarkets and citing improving attendance and limited new construction.