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Report: Valuations Have Stabilized but Remain Sensitive to Market Conditions
Lending and transaction volumes are growing across property types, and valuations have largely stabilized, the NAIOP Research Foundation says in a new report. “The rapid repricing cycle triggered by aggressive monetary tightening appears largely complete, but a valuation recovery remains sensitive to long-term interest rate movements and capital market conditions,” write Will McIntosh, Ph.D., CEO, ArcBridge Research Group, LLC, and Shawn Moura, Ph.D., executive director, NAIOP Research Foundation.
Titled US Capital Markets Report, Second Half of 2025, the report finds that banks have increased lending to commercial properties, while conduit lenders have stepped back. On the borrower side, private buyers dominate overall purchasing activity, with institutional investors focused on industrial and multifamily properties.
“This analysis provides our members with the insights they need to navigate shifting capital markets and position their projects for long-term success,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “This report ensures they are equipped to make informed, strategic decisions as market conditions evolve.”
- ◦Sale/Acquisition
- ◦Financing
