Whitepaper
Commercial Real Estate Market Report: Q3 2025
REcap: Baker Tilly's award-winning commercial real estate market report
Nov. 6, 2025 · Authored by Brent W. Maier, Kevin R. Secrist, Allen Freeman, Nicholas Palkovic, Jay Ian, Vladimir Lyashchenko, Mike Nitowski
Equity and real estate markets are showing strength despite economic uncertainty and elevated inflation. Commercial real estate activity is rising, driven by rate cuts and limited new development. While momentum is building, inflation and potential shocks could impact the outlook for late 2025.
Key takeaways
- Multifamily housing: The U.S. multifamily sector demonstrated resilience with over 102,000 units absorbed, marking the third consecutive quarter of strong demand. Notably, rent declines were observed in 16 of the top 30 metros, including Boston and several Midwest cities, indicating that pricing pressure is now affecting even markets with limited new supply. This broad-based softness, coupled with ongoing economic uncertainty, has prompted institutional investors to exercise caution in their rent growth assumptions.
