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- Is Commercial Real Estate “Back”? TD Bank’s CRE Survey Reveals Optimism for 2025
Is Commercial Real Estate “Back”? TD Bank’s CRE Survey Reveals Optimism for 2025
Slice of Real Estate Team
March 03, 2025
Key Highlights:
76% of professionals believe falling commercial real estate property values will increase investment this year.
52% cite future interest rate movements as the biggest impact on CRE, while only 14% think new administration policies will be a major factor.
70% predict housing material prices will rise in 2025, yet only 32% think it will impact new developments.
68% believe return-to-office mandates will have the biggest business impact, with mixed-use properties expected to lead growth.
60% of industry professionals see predictive analytics as the top tech trend shaping CRE in 2025.
Source: Business Wire
Notable Quote:
“We’re experiencing a very modest recovery in parts of the office market, but that doesn't mean the industry should be quick to revert to its old ways. Investors and commercial real estate owners are taking changing expectations into account when investing in their next project. The commercial real estate sector will face new challenges in 2025, but this analysis shows that the right investors are prepared to face those challenges head-on.”
Why This Matters:
Despite rising energy costs, interest rates, and economic uncertainty, the commercial real estate industry remains resilient. Investors see opportunity in lower property values, evolving office dynamics, and the integration of smart technologies. With a shift toward mixed-use properties, return-to-office mandates, and sustainability-focused investments, 2025 is shaping up to be a year of strategic adaptation in CRE.