BiggerPockets Daily Multifamily and Commercial Real Estate Have Stronger Start in Q1 Than Last Year—What the Data Says
5 snips
May 16, 2025 Commercial real estate lending saw a staggering 90% increase in Q1 2025 compared to last year, driven by bank growth and tighter spreads. The rebound in office space demand is also noteworthy. Meanwhile, the multifamily sector shows promising investor sentiment for core assets, even as value-add assumptions remain steady. Interestingly, the market has hit a bottom, presenting a unique buying opportunity for investors before property values are expected to rise.
AI Snips
Chapters
Transcript
Episode notes
Commercial Real Estate Lending Rebound
- Commercial real estate lending surged 90% year-over-year in Q1 2025, showing a strong market rebound.
- Banks increased market share while loan spreads tightened significantly to stimulate refinancing and acquisitions.
Office Real Estate Recovery
- Office real estate is recovering as return-to-office policies increase downtown foot traffic.
- Office assets have improved as many previous losses and defaults have already occurred, improving investment appeal.
Core Multifamily Metrics Improve
- Core multifamily asset metrics improved as cap rates declined and investor sentiment turned more positive.
- No markets raised IRR targets for core assets, marking a rare shift after three years.