A cautiously optimistic picture

Globally, the real estate market is showing signs of stabilisation after pandemic-related upheaval. According to the Columbia Threadneedle Investments “Global Real Estate Outlook 2025” (published Feb 24 2025), significant headwinds (higher rates, inflation, geopolitical risk) have been met with rising investor optimism albeit selectively. Global English
Similarly, a mid-year report by CBRE indicates for the U.S.: as of Q2 2025 the prime office vacancy rate is 14.5%, with some improvement expected by end-2025. CBRE

Major global themes

• Sector divergence: Residential, logistics and select retail are stronger; office and large-scale traditional retail are weaker due to structural changes (remote work, e-commerce). Global English+1

• Sustainability & obsolescence risk: Assets that don’t meet modern standards (energy, tech, use flexibility) are seen as higher risk. JLL+1

• Geographic & asset-class variation: Some markets recover faster; assets in prime locations outperform. Timing and selection matter. Nuveen+1