- Brookfield has sold $13B in real estate so far this year, up sharply from previous years.
- CEO Lowell Baron says the market is slowly returning to normal after a long slowdown.
- Investors are focusing on top-tier assets like data centers and rental housing, while older office buildings still struggle.
Deals Are Coming Back
Bloomberg reports that after a long slump, big real estate transactions are returning. Brookfield Asset Management has already sold $13B worth of properties in 2025, marking the return of mega deals to the global real estate market. This is a major jump from $3B in the first half of 2024 and just $2B during the same period in 2023.
CEO Lowell Baron, who took over in June, says market activity is picking up again. “We’re edging back to a more normal rate of transactions,” he said.
Liquidity Unlocks Fundraising
These sales matter. Private equity firms have struggled to return capital to investors, slowing down new fundraising. But Brookfield has reversed that trend. The firm raised $5.9B for its latest real estate fund in the first quarter, bringing its total to $16B.
According to Baron, the recent asset sales are giving investors more confidence. “We are returning a material amount of capital,” he said. This, he added, helps investors reinvest in new funds.
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Recovery Is Uneven
While activity is rising, not all areas are recovering. Demand is strong for sectors like rental housing, logistics, and data centers. These assets are in short supply and still draw interest.
On the other hand, older office buildings face high vacancy and weak demand. For example, Brookfield had to restructure a loan tied to the CityPoint tower in London. In Los Angeles, it defaulted on loans and gave up control of office buildings.
Brookfield Bets on Offices
Even so, Brookfield has made bold moves. After the pandemic, it bought several European office landlords, bucking the trend. Rival Blackstone, by contrast, has cut back on office exposure.
Now, demand is rising in top office markets. Companies like Amazon and major banks are pushing workers back to the office. At the same time, new development is limited. This mix is pushing rents higher in the best areas.
Outlook: Gaps Create Chances
Baron says the slow return of capital is keeping prices in check. That gives well-funded firms like Brookfield a chance to buy with less competition.
“There’s still stress in the market,” he said. Many buildings have large debts or leases that haven’t come due yet. That delay means the buying window remains open for now.
Why It Matters
Brookfield’s return to mega deals suggests the worst of the slowdown may be over. With capital flowing again, the market could see more big-ticket deals in the months ahead.
What’s Next
Expect continued demand for top-tier assets. But lower-quality buildings will likely face more challenges as the market shift continues. Investors who move early could gain an edge in this next phase of recovery.
