Real Assets Investments Blog - Harrison Street Private Wealth

Growth in CRE Lending: A Constructive Sign for 2025 Portfolios

Written by Versus Capital Investment Team | May 6, 2025 1:00:00 PM

Commercial real estate lending is gaining momentum, and that’s a positive signal for investors.

According to CBRE, lending activity rose 21% quarter-over-quarter and 37% year-over-year through Q4 2024, surpassing the five-year pre-pandemic average.

The increase in lending activity exceeded the five-year pre-pandemic average and should eventually result in stronger buying power and a lower cost of capital, which we believe would benefit real estate asset values throughout 2025.

If you’re an RIA looking to expand real estate allocations within client portfolios, let’s connect.