- Commercial real estate transactions are on the rise, with Q1 2025 volumes reaching $100.6B, a 14% year-over-year increase.
- Buyers and sellers are aligning on pricing, aided by creative deal structures like seller financing, cash deals, and 1031 exchanges.
- Coldwell Banker Commercial anticipates stronger transaction volumes in the second half of 2025 as confidence returns to the market.
A Pricing Reset in Motion
GlobeSt reports that after years of stalled negotiations and pricing mismatches, a thaw appears to be hitting the commercial real estate sector. Coldwell Banker Commercial’s 2025 Midyear Outlook Report says buyers and sellers are getting closer on price, breaking a long-standing stalemate.
Sellers are adjusting expectations rather than waiting for peak values, helping to unlock more CRE transactions. Meanwhile, buyers are using new strategies to handle high borrowing costs. These shifts show how both sides are adapting to today’s economic environment.
Where the Deals Are Happening
MSCI Real Assets reports that U.S. CRE transactions hit $100.6 billion in Q1 2025. That’s a 14% increase from a year ago. Individual asset sales rose 24% during the same period.
Retail properties led the way, followed by industrial, multifamily, and suburban office. Central business district offices, however, continue to struggle.
Secondary and tertiary markets are seeing more deals, often driven by owner-users and 1031 investors. These buyers are more flexible and willing to move fast when pricing aligns.
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Financing Gets Creative
Traditional lending remains tight due to high interest rates, so buyers are turning to alternative financing. Seller financing, once mostly used for smaller deals, is now more common across all property types.
Buyers are also relying on cash, 1031 exchanges, and funding from local banks, credit unions, and private lenders. These strategies help avoid steep rates from major financial institutions.
Coldwell Banker’s 2025 Broker Sentiment Survey shows that sales activity now exceeds leasing in many markets. This marks a shift from previous years and reflects a growing appetite for transactions.
What’s Next
Coldwell Banker Commercial expects more deals in the second half of 2025. As economic conditions stabilize, both sides are more willing to compromise.
While challenges remain—especially in the office sector—the broader market shows signs of renewed confidence. Innovation in financing and realistic pricing could continue to drive deal momentum through year-end.
