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CBRE Forecasts Economic Growth in 2025 Along with Risk of Higher-for-Longer Rates
The U.S. economy is poised for above-average growth in 2025, driven largely by consumer spending. This growth and potentially persistent inflation may mean interest rates will stay higher for longer, CBRE says in its 2025 U.S. Real Estate Market Outlook.
CBRE foresees several positive developments in 2025. These include a modest increase in commercial real estate investment volume, a topping out of vacancy in the office market, and rising occupancy and rents in the multifamily sector despite robust new supply. The firm also anticipates reverberations for the retail and industrial & logistics sectors from the anticipated higher U.S. tariffs on foreign goods.
“The U.S. economy has achieved a rare soft landing in the face of higher interest rates, and the outlook for growth in 2025 is increasingly optimistic,” said Richard Barkham, CBRE’s global chief economist and global head of research. “Risks to this outlook include the large U.S. fiscal deficit, which adds to bond market volatility, and the fragility of the Chinese economy.”
- ◦Sale/Acquisition
- ◦Economy
