Industry Insight: November 2025

Preparing for a Changing Market  
As we move toward the end of 2025, commercial real estate professionals are balancing optimism with caution. Capital markets remain fluid, property performance is uneven across sectors, and investor strategies are adapting to a new cycle. This month’s insights look at how these shifts are shaping opportunities as we head into 2026. 

Capital Markets and Lending Environment 
The lending landscape continues to evolve as investors adjust to higher borrowing costs and tighter credit standards. While deal volume remains below pre-2022 levels, signs of renewed activity are emerging, especially among buyers with strong balance sheets or creative financing strategies. Many are prioritizing cash flow stability and value-add opportunities rather than pure appreciation plays. 

Sector Performance and Market Trends 
Industrial remains a consistent bright spot, driven by supply chain modernization and demand for logistics space. Multifamily markets are normalizing after years of record rent growth, while office continues to search for equilibrium through adaptive reuse and flexible workplace strategies. Retail, once seen as the laggard, is regaining investor interest in well-located community centers and mixed-use projects. 

Regional Highlights 
Secondary and tertiary markets are attracting more attention from investors seeking higher yields and population growth. Sunbelt metros, in particular, continue to lead in transaction volume, while select Midwest and Mountain West cities show promise for steady, long-term performance. Local market knowledge and data-driven decision-making remain key advantages for those navigating regional variations. 

 Professional Perspective 
At The CCIM Institute’s Fall Forum in October, economist Steig Seaward, Senior National Director of Research at Colliers, delivered an economic update examining the forces shaping the CRE landscape heading into 2026. With decades of experience analyzing national and global markets, Seaward highlighted how shifting trade policy, labor dynamics, and consumer behavior are influencing growth and investment trends. 

He pointed to a new phase of “modern protectionism,” where tariffs and reshoring efforts aim to boost domestic manufacturing but have also raised costs and slowed output. Inflation is cooling in most categories, yet housing and service costs remain stubbornly high, and corporate profits are tightening as companies absorb cost increases. The result, he noted, is a mixed environment—steady consumer activity alongside an increasingly cautious business sector. 

Seaward emphasized that while job growth has softened and housing affordability remains strained, certain CRE sectors are proving resilient. Industrial continues to perform well; retail has stabilized through smaller footprints and omnichannel strategies, and capital markets are regaining momentum after a period of recalibration. His outlook for 2026 is one of cautious optimism: challenges remain, but strong consumer spending and selective investment could help steer the economy away from a hard landing. 

Takeaway: The economy is entering a period of transition marked by slower growth, persistent inflation in key areas, and evolving demand across property sectors. Resilient consumer spending, stable industrial demand, and improving capital market conditions offer reasons for measured optimism heading into 2026. 

Prepared For the Road Ahead 
At The CCIM Institute, our goal is to ensure every CCIM Designee and candidate is equipped to thrive in a changing market. Through modern tools, data-driven education, and timely industry insights, we help commercial real estate professionals stay ahead of trends, sharpen their decision-making, and uncover new opportunities in every market cycle. Click our bio link to visit our website and learn more about how The CCIM Institute’s resources can strengthen your business.