Commercial real estate investment value in the U.S. 2019-2024, by property type
Amid a worsening economic climate, the value of commercial real estate investment in the U.S. plummeted in 2023, with a mild increase in 2024. According to industry professionals, the biggest factors impacting the real estate industry in 2025 are the rising cost of finance, and declining capital availability.
Development of commercial real estate cap rates in the U.S.
Cap rates started to increase in 2022, reflecting a decline in property values. According to the forecast, cap rates for commercial real estate are expected to peak in 2024, followed by a steady decline. Cap rates measure the expected rate of return on investment properties and are calculated by dividing the net operating income of the property by the current asset value. While a higher cap rate indicates a higher rate of return, it is also associated with higher risk.
Which property type has the best development prospects?
In 2025, the development opportunities in the commercial real estate sector deemed the best for single-family real estate. Industrial and distribution real estate, including warehouses, factories, and big box distribution centers, was also ranked high.
