
Trends & Insights: The Future of Commercial Real Estate
How ‘not your typical cycle’ defines 2025’s commercial real estate market
Jan 16, 2025
Industry experts Brian Klinksiek, Global Head of Research and Strategy at LaSalle Investment Management, and Ben Breslau, JLL’s Global Chief Research Officer, delve into the shifting landscape of commercial real estate for 2025. They stress the unique nature of current cycles, warning against historical comparisons. Topics include the rise of data centers, the boom in specialized housing, and the potential of industrial outdoor storage. They also offer insights on emerging markets and evolving office dynamics post-COVID.
25:40
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Quick takeaways
- The commercial real estate landscape of 2025 requires investors to reevaluate strategies, moving past historical patterns to embrace emerging trends.
- Sectors like data centers and specialized housing present significant investment opportunities, benefiting from increased demand and evolving market dynamics.
Deep dives
The Dawn of a New Cycle in Real Estate
The commercial real estate industry is entering a new landscape that differs significantly from past cycles, marking a potential renaissance for investment opportunities. Historically, the workforce lacked experience in downturns, but understanding previous cycles can inform future strategies. The current environment has shifted toward increased clarity in pricing, as interest rates stabilize and align more closely with real estate valuations. This improved market sentiment, alongside the avoidance of a recession, indicates that the new investment cycle can thrive without drastic interest rate cuts, fostering renewed confidence among investors.
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