SitusAMC’s latest quarterly report, titled Fog on the Tracks, highlights a slowdown in commercial real estate (CRE) investment activity as economic uncertainty and public market volatility continue to weigh heavily on investor confidence. Despite this cautious sentiment, the report also points to emerging positive signs, suggesting that the market may be stabilizing.
The study found that investor sentiment toward CRE improved in the first quarter of 2025, especially following policy announcements in early April and increased turmoil in equity markets. In this environment, many investors began viewing CRE—particularly the multifamily sector—more favorably, with sentiment toward multifamily assets reaching its highest level in over a decade.
“The quarter’s findings illustrate a CRE market in flux,” said Peter Muoio, head of SitusAMC Insights and co-author of the report alongside Vice President Jen Rasmussen. “Investors are prioritizing resilience and stability as they navigate an uncertain market environment. Apartments stand out as a favored asset class thanks to limited supply and sustained demand. Meanwhile, office continues to struggle, though early signs of stabilization are appearing in some sectors.”
The report underscores the evolving landscape of commercial real estate, with investors adopting a more cautious and selective approach while waiting for clearer economic signals.
