The Good, the Bad, and the Unknowns: CRE Finance Trends and Tips for ‘25

Strategies for Navigating the Ups and Downs of Today’s Commercial Real Estate Landscape

By Joe Derhake, PE, CEO of Partner Engineering and Science Inc., and Eric Enloe, MAI, CRE, FRICS, Senior Managing Director of Partner Valuation Advisors | Published Feb. 26, 2025, on GlobeSt.com.

The recent MBA CREF conference was illuminating both on a macro forecast level, as well as in several important themes that emerged.  MBA is projecting a positive year overall, but not as positive as previously forecasted - MBA revised its 2025 C/MF mortgage lending forecast down to 16% from its August 2024 projection of 24%. MBA’s chief economist and other panelists pointed to a mix of tailwinds and headwinds, including:

• A strong appetite to lend across all debt types
• Significant unpredictability – in the 10-year treasury, macroeconomic environment, and the US economic and policy environment
• Continued elevated interest rates, and borrowers continuing to wait for drops
• The “wall of maturities”, while an overplayed term, will be a reality in 2025 with nearly $1 trillion in CRE mortgages set to mature
• Lenders will likely take a “no more free extensions” stance, adding to the maturities and forcing some action in the form of sales, refi’s, loan workouts, or foreclosures

In this Globe St. article, Joe Derhake and Eric Enloe break down key property trends for 2025 and beyond and offer guidance on how to make the most of this unique market.