Rising interest rates from 2022 to 2024 constrained the U.S. real estate market, driving property values downward on average 20%.

By early 2024, however, pricing data signaled that property pricing had reached its low point and started to recover, ushering in a new cycle for the market.

Fast forward to early 2025, and we see continued increases in property valuations with property pricing increasing about about 5% in 2024 (average across 12 commercial real estate sectors, per Green Street Advisors).

This highlights the ongoing recovery and, while uncertainties remain around factors such as unemployment, inflation, and interest rates, the data suggests that the market has moved past its most challenging phase.

Remember, markets move in cycles, and it’s likely that U.S. commercial real estate has entered a promising new phase of growth and opportunity.