CRE Debt Market Sentiment: July 2025
Market Overview As July draws to a close, market participants have reset expectations on the path of monetary policy. With
Market Overview As July draws to a close, market participants have reset expectations on the path of monetary policy. With
With transaction volume still languishing nearly 70% below pre-2022 levels, since the Federal Reserve launched its aggressive rate-hike cycle, many commercial real estate investment firms find themselves in unfamiliar terrain.
Our June 2025 CRE Debt Market Update explores the shifting lending landscape as banks re-enter the market, LifeCos resume quoting, and debt funds pursue cash-flow plays. With sticky inflation, a cautious Fed, and property-type performance diverging, savvy borrowers must stay proactive. Read on for the latest rate trends, lender appetite, and market forecasts across all capital sources.
Volatility is here, but so is capital.
The commercial real estate capital markets are navigating a volatile macro environment as tariff policy shocks ripple across the U.S. economy. Inflation expectations are being revised upward, lenders are recalibrating spreads, and equity investors are weighing risk with caution—but deals are still getting done. Liquidity remains firmly intact.
The commercial real estate (CRE) market is showing signs of a significant rebound as we move toward 2025. For investors, developers, and property owners, this could mark the best entry point in nearly two decades. Let’s break down the trends and opportunities shaping the market’s recovery.
John Morelli leverages his nationwide capital network to stay ahead of the ever-changing real estate debt markets. Here’s the latest insight into key trends and lending environments, helping you make informed financing decisions.
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