Real estate investors are navigating a landscape shaped by mixed economic signals, carefully weighing long-term fundamentals against short-term volatility, according to Colliers’ latest Market Snapshot.
Colliers’ David Amsterdam, president of capital markets, and Aaron Jodka, director of national capital markets research, note that ongoing policy and geopolitical uncertainty has caused some investors to move cautiously. Others, however, are using the moment to capitalize on emerging opportunities. As Amsterdam points out, real estate remains a long-term investment, and risk is an inherent part of the global economic cycle.
Capital on the Sidelines, Momentum Building
The report highlights that a significant portion of capital raised between 2022 and 2024 has yet to be deployed, with roughly 72 percent of assets under management still waiting to be invested. Now that pricing has adjusted and early signs of a new value growth cycle are emerging, Colliers expects investment activity to pick up in the coming quarters.
Fundraising also appears to be turning a corner after a sluggish second half of 2024. Amsterdam notes that improving capital raises, combined with growing pressure to put money to work, point toward a gradual market recovery. Large funds have already been assembled by major real estate players, and early third-quarter data suggests fundraising could surpass 2024 levels, setting the stage for a stronger 2025. Investment sales activity is also beginning to rebound, though not without periodic volatility.
Multifamily Leads as Other Sectors Gain Traction
Multifamily continues to attract the highest transaction volume, but investors are increasingly finding opportunities across all property types, according to Jodka. Office fundamentals are showing signs of stabilization, particularly for well-located, high-quality assets. Long-term investors are identifying attractive pricing, often in properties that require lease-up strategies—opportunities that carry higher risk but also the potential for outsized returns.
Industrial assets also present opportunity for investors willing to lean into uncertainty, while demand from occupiers—especially technology firms on the West Coast—is beginning to reemerge. Retail investment remains constrained by limited inventory, though several indicators suggest deal activity could increase as more product comes to market.
Hospitality continues to offer multiple investment angles, with luxury and resort properties drawing especially strong interest.
Brighter Outlook Ahead
Looking forward, market conditions are expected to improve over the next six months, supported in part by gains in the stock market and stabilizing trade conditions. Jodka anticipates that sidelined capital will gradually reenter the market, testing investor appetite for larger transactions. Assuming steady U.S. economic growth, investment sales volume is expected to continue trending upward.
In this environment, Jodka emphasizes that investors with both conviction and available capital are best positioned to take advantage of the opportunities emerging across the real estate landscape.
Source: GlobeSt.
