- CRE deals between $5M and $25M totaled $45.24B in H1 2025, up 3.5% from the same time last year.
- Multifamily, industrial, and retail properties are driving activity, with office assets slowly returning.
- Regional banks have boosted lending, helping smaller deals move forward alongside new financing sources.
Smaller Deals Show Renewed Strength
According to Globe St, commercial property sales under $25M are starting to bounce back. In the first half of 2025, these deals totaled $45.24B, per Green Street. That’s a 3.5% increase compared to the same period in 2024.
However, activity still trails the market’s 2022 high of $62.26B. Even so, many analysts believe momentum is returning.
Multifamily and Industrial Lead the Way
Multifamily made up 26% of small deal volume in early 2025. Industrial followed closely at 24%, while retail accounted for 21%. Office assets represented 18%, with hotels at 8% and niche property types, like self-storage and data centers, making up the remaining 3%.
This breakdown is in line with recent years. In 2024, multifamily and industrial also led the market. In 2023, multifamily alone accounted for 27%.
Banks Step Back In
Financing trends are playing a major role in the market’s recovery. Regional banks are lending again, which is helping to keep smaller deals moving.
Even some office properties are getting loans—if they are well-located and generate steady cash flow. Beyond banks, other capital sources have become more active. These include commercial mortgage-backed securities (CMBS), debt funds, and government-backed lenders.
Also, higher interest rates are boosting debt yields, which has attracted certain types of investors.
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Private Buyers Dominate, But Global Players Are Joining
Private buyers still lead this part of the market. Family offices, syndicators, and wealthy individuals are the most common players in sub-$25M deals.
Yet, there’s been a shift. More international investors, who once focused on larger deals, are now entering the small-deal space. Lower prices and stronger fundamentals are making these deals more attractive
Why It Matters
Although total CRE sales remain below past highs, the rebound in small deals is a promising sign. It shows that investor confidence is returning in key asset classes, especially multifamily and industrial.
Smaller deals also make up an important part of the market. Their recovery may signal a broader return to activity in the coming quarters.
What’s Next
With more financing options and better asset pricing, the sub-$25M market could continue to grow. Investors looking for long-term stability may keep turning to smaller, income-producing properties.
As interest in these deals increases, expect this segment to remain one of the more active parts of the CRE market.
