- CRE fundraising grew 29% in 2025, with total capital raised reaching $222B.
- Data center fundraising led all sectors, accounting for 37% of capital, up from 2% last year.
- Brookfield and Blackstone drove 16% of all CRE commitments, with mega-fund closings.
- Fundraising timelines lengthened, but more than half of funds met or exceeded targets.
Investor Momentum Builds
The Commercial Property Executive reports that private real estate fundraising saw a notable rebound in 2025, recording a 29% year-over-year increase after several slower years. According to PERE’s latest report, US investors poured $222B into CRE fundraising, marking the first annual growth since 2021.
High-profile closings by Brookfield ($16B) and Blackstone ($11B and $8B funds) anchored the market, contributing a combined 16% of total capital. The fundraising surge signals strengthening investor confidence and growing sector interest across the commercial real estate landscape.
Data Centers Dominate Capital Flows
Data center fundraising outpaced all other segments, seizing a record 37% of capital raised compared to just 2% in the prior year. Noteworthy vehicles included Blue Owl’s $7B and Principal Financial Group’s $3.6B data center funds. This dramatic shift highlights the increasing appeal of digital infrastructure and cloud-supported assets among institutional investors, reshaping CRE fundraising priorities for 2025 and beyond.
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Asset Class and Strategy Shifts
Multifamily and industrial asset classes lost ground, dropping to 32% and 16% of capital raised, respectively. Office continued to fall, while retail and student housing study saw slight upticks. Opportunistic strategies became more popular—accounting for 33% of capital, up from 18%—while value-add and debt strategies declined from year-ago levels.
Longer Closings, but Targets Surpassed
Despite rising volumes, CRE fundraising closed at a slower pace. The average time to close increased to 25 months, versus 23.7 months in 2024, nearly doubling early-decade averages. This follows several consecutive years of fundraising declines, making the 2025 rebound especially notable as investor confidence returns. Still, 52% of funds finished at or above target in 2025, a notable improvement over previous years.
