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REcap: Baker Tilly's signature commercial real estate market report

Feb 05, 2025

Our signature quarterly commercial real estate market report, REcap, helps real estate owners, developers, investors and professionals understand how the market is performing and current trends to assist in planning for the future.

NEW | Fourth quarter 2024

REcap

With election uncertainty in the rearview and economic data trending favorably, 2025 should be a year of growth and renewed real estate activity. The new administration has promised changes, and it will remain to be seen what potential tariffs and policy changes could mean for the economy overall and commercial real estate specifically.

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Each report is designed to provide readers with a recap of the quarter as it relates to notable transaction activity, data and analytics in key real estate sectors across the United States, including but not limited to multifamily housing, office, retail, industrial and capital markets.

There are a number of indicators that impact how owners, developers and investors assess what's happening in the real estate market. Our report compiles multiple data points to help readers stay up to date on what's currently going on.

Todd Carpenter, Managing Principal of Development & Community Advisory

REcap | Third quarter 2024

The much-anticipated Fed rate cut finally happened in September with the board surprising some with a 50-basis point reduction. On the heels of this announcement, the major stock market indices have trended upwards and the latest job numbers were surprisingly strong with the unemployment rate reversing recent trends and decreasing.

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REcap | Second quarter 2024

With key economic indicators appearing to be favorable, commercial real estate transaction activity remains stagnant. This may be driven by a reluctance to strike deals when it appears more probable than in recent memory that the interest rate environment will be improving sooner rather than later.

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"This report outlines transactional activity including all real estate classes and gives our readers the information they need to go out and do what they do best: invest in real estate."

Mike Kamienski, National Real Estate Practice Leader

View past issues of the market report

Commercial Real Estate Market Report: Q4 2023

Transaction activity remained extremely depressed in the fourth quarter of 2023, while most sectors saw some fundamental deterioration and valuations decreased broadly.

Commercial Real Estate Market Report: Q3 2023

The real estate markets remained stagnant in the third quarter with low transaction volumes amid continuing debt concerns and operational pressures. Significant cost pressures were impacting most sectors with insurance and property taxes being primary culprits.

Commercial Real Estate Market Report: Q2 2023

Much of what could be said in the first quarter of 2023 still applies in the second quarter, with languid transaction activity and uncertainty being the primary hallmarks. Commercial real estate was generally sideways this quarter as activity remained depressed and confidence in fundamentals seemingly down.

Commercial Real Estate Market Report: Q1 2023

The first quarter of 2023 saw some commercial real estate trends stick around from the end of last year, with transaction activity slowing further and inflation showing signs of easing.

Aerial Dramatic View of Downtown Chicago at Sunset

Commercial Real Estate Market Report: Q4 2022

2022 closed on a sour note for the commercial real estate industry, with some mildly encouraging macroeconomic news being more than offset by a lackluster transaction environment and a negative short-term outlook that was fueled by a challenging capital markets environment.