By Michael Bull, Host of America’s Commercial Real Estate Show
Commercial real estate professionals have had a wild ride over the past few years. Rapid changes in interest rates, shifting economic policies, global tariffs, and evolving work habits have kept the industry on its toes. So, what’s the current state of the market—and more importantly, is it a good time to buy, sell, or develop?
Let’s dive into the current landscape and what it could mean for your next move.
Before we get started, don’t miss this year’s C5 + CCIM Global Summit—September 16–18 in Chicago. If you're serious about networking, dealmaking, and learning from some of the top minds in the business, this is the place to be. Visit c5summit.realestate to learn more.
That depends on your situation. Are you holding a stabilized asset with solid tenants in a high-demand market? If so, this could be a strong time to sell.
Interest rates, while higher than the unusually low rates we’ve seen over the past decade, are actually within historical norms. If you’re holding out for much lower rates, you may be waiting a long time. In today’s market, buyers are adjusting to the “new normal” and deals are still getting done.
Cap rates remain attractive in many sectors:
Multifamily: Class A deals are trading at 5% cap rates.
Retail & Medical Office: Often in the 6%–7% range.
Single-Tenant Net Lease: Still seeing strong demand and aggressive pricing.
Office: Smaller, well-located properties are transacting. Larger deals are more impacted, but opportunity exists.
So yes, properties are selling. And if your investment goals are shifting—whether to diversify, reduce management, or reposition your portfolio—it may be the right time to list.
In one word: yes—especially if you’re a long-term investor.
History favors the brave. Think about the investors who bought during downturns like the S&L crisis, post-dot-com retail slump, or after the 2008 housing crash. Many of them made fortunes by acquiring assets while others hesitated.
Today’s headlines may feel gloomy, but smart investors see opportunity:
International capital is flowing into U.S. real estate even as global investors temper expectations about short-term performance.
Supply constraints are emerging, especially in sectors like multifamily, industrial, and office, where development starts have slowed dramatically.
Rents in many areas are rising due to limited new supply.
When supply is tight and demand slowly increases, rents typically rise—and so do values.
Even REITs are buying back their own shares, signaling confidence in the market.
Yes, office is the most challenged sector right now—but that might make it the most promising for buyers.
Consider this:
More office space is being taken off the market through demolitions and conversions than is being delivered.
Leasing activity has improved, with positive net absorption over the last four quarters and 18% growth in leasing activity year-over-year.
Major employers are continuing to call employees back to the office, and trends toward hybrid work still support significant in-office demand.
Add to that historically low prices per square foot and some real opportunities emerge—especially for owner-users. Lenders are often more favorable toward owner-occupants, and if you’re planning to occupy, the long-term benefits can be significant.
In many markets, yes—and timing is everything.
With development slowing dramatically due to rate hikes, those who start entitlements and planning now may find themselves delivering projects into a more favorable market 2–3 years from now.
Our land team is seeing renewed activity from developers who realize this could be the perfect window to get ahead of the curve.
Interest rates may seem high, but commercial real estate is a long-term game. If you find the right property at the right price, don’t let short-term borrowing costs scare you off. You can always refinance later.
As always, the right time to buy or sell depends on your goals, asset type, and local market dynamics. But from where I stand, we’re entering a window of opportunity that the bold—and informed—will look back on as a smart time to act.
Have Questions?
If you’d like help evaluating a property, market conditions, or investment strategy, reach out. And don’t forget to subscribe at CREshow.com for more insights and interviews.
Until next time—lead, learn, and laugh.
— Michael Bull
Host, America’s Commercial Real Estate Show
Broker, Bull Realty
📧 michael@bullrealty.com