M id A tlantic Real Estate Journal — 2025 Forecast — January 2025 — 11B
www.marej.com
2025 F orecast
quityMultiple released its 2025 Commercial Real Estate Market EquityMultiple 2025 Market Outlook A year of varied opportunities and nuanced strategic considerations in commercial real estate E recovery, spurred by the stabi- lization of urban cores and in- creased leasing activity. Retail EquityMultiple anticipates continued recalibration in cap- ital markets, with non-bank
targets quarterly distributions to investors through secure, collateral-backed loans. As of the end of Q3, the Ascent Income Fund has achieved a 8.4% historical distributed yield to investors. Opportunities for Investors EquityMultiple’s proprietary market framework identi- fies regions and asset classes poised for growth in 2025, including multifamily in un- dersupplied urban markets, logistics assets in growth corri- dors, and niche sectors benefit - ing from demographic trends. “This is a really exciting
moment for us and for self- directed who are looking to diversify into private-market real estate after, candidly, a tough few years for markets” said Charles Clinton, CEO of EquityMultiple. “Our rig- orous market analysis and proprietary sourcing ensure that investors are positioned to capture opportunities as market dynamics evolve.” EquityMultiple is a real estate investment plat- form offering private eq- uity and private credit op- portunities to accredited investors. MAREJ
Outlook, pre- senting a for- ward-looking analysis that identifies key oppor- tunities and challenges amid eco- nomic and regulatory shifts.
“2025 is shaping up to be a year of divergence and transformation across commercial real estate markets,” said Marious Sjulsen, chief investment officer at EquityMultiple.
Marious Sjulsen
in high-demand submarkets, such as NYC, is rebounding, with digital-first brands es - tablishing physical presences. Capital Markets and Private Lending
lenders playing an increas- ingly critical role. The firm’s Ascent Income Fund, which leverages private real estate credit, is well-positioned to capitalize on this shift, which
The report underscores EquityMultiple’s commit- ment to delivering strategic insights and high-quality investment opportunities to accredited investors. “2025 is shaping up to be a year of divergence and transforma- tion across commercial real estate markets,” said Mari- ous Sjulsen, chief investment officer at EquityMultiple. “From inflationary pressures to deregulatory policy shifts, the landscape is complex but rife with opportunities for well-positioned investors. Our analysis highlights the pockets of CRE markets that may yield the most compelling risk-adjusted returns.” Insights from the 2025 Outlook Macroeconomic Environment The Federal Reserve’s an- ticipated easing of interest rates - projected to settle be- tween 3.5% and 4.0% - should alleviate some pressure on real estate valuations, while inflation remains under con - trol. New deregulatory and tax relief measures under the incoming administration could provide a favorable climate for development and investment across niche CRE sectors, from assisted living facilities to industrial assets supporting reshoring initiatives. Sector Highlights Multifamily: With con- struction starts declining 45% from their peak, a tight- ening supply pipeline and robust demand fundamentals position the sector for steady rent growth and declining vacancies, particularly in urban markets. Industrial: Demand re- mains strong for logistics and manufacturing facilities, driven by reshoring trends and supply chain investments, es- pecially in North-South tran- sit corridor hubs like Nashville and San Antonio. Office and Retail: Both sectors show early signs of
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