Growth Continues, but with More Caution
The LightBox Property Listings Index climbed to 197.2 in Q2, up 14% from Q1 as sellers continued to bring a steady stream of assets to market as pricing clarity improved.
By major asset class, multifamily led with 36% of listings, followed by retail (18%), and land (14%). Office listings rose 12% from last quarter partly reflecting distress-driven sales. Institutional capital reentered selectively, with listings over $50 million increasing from 11% to 17% as private capital activity eased slightly.
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Other Key Q2 CRE Market Snapshot Developments:
- The Federal Reserve kept interest rates unchanged at both of its Q2 meetings (May and June), and again in July, maintaining its “higher-for-longer” stance amid persistent inflation and mixed economic signals.
- Multifamily remained the most listed asset class, accounting for 36% of all listings in Q2, up from 33% in Q1, reinforcing its continued dominance in investor focus.
- Year-to-date growth in properties listed for sale at midyear was strongest in land (up 69%), retail (64%), and multifamily (51%).
- Office assets posted another quarter of growth, with listings up by 12% quarter over quarter, fueled by a mix of distressed sales and ongoing portfolio reshuffling.
- The share of private capital (less than $20 million) deals declined from 72% in Q1 to 65% in Q2 while institutional listings (more than $50 million) rose from 11% to 17%, a sign of growing engagement from larger investors.
LightBox Commercial Property Listings Index (base Q1 2021=100)
Near-Term Outlook: Guarded Optimism in an Uncertain Market
If 2025 has proven anything, it’s that uncertainty is the only constant. Interest rates, tariffs, and economic stability remain front-of-mind for investors, yet the CRE market continues to show little sign of retreat. The June LightBox CRE Activity Index delivered its strongest reading of the year, and while July’s Index showed a slight easing, the Index continues to be in the triple digits, reflecting a market that is actively engaged, supported by available capital, robust lending, and selective demand across multifamily, retail, and even office sectors.
Barring a major shock, Q3 is positioned for continued progress. The LightBox Mid-Year 2025 Sentiment Survey revealed that 69% of CRE professionals expect the CRE market to “soldier on” through the second half, provided deals remain financially viable. A majority anticipate flat or rising deal volume over the next two quarters, pointing to expectations of long-awaited interest rate relief, expanding distressed asset opportunities, and improving pricing clarity, all factors that could stimulate transaction activity. Isolating the brokerage/investor respondents to the Mid-Year sentiment survey, 71% are likely to pursue new CRE transactions in the second half, assuming that current market conditions continue, and only 19% are unlikely to chase new deals.
This analysis is part of the LightBox Quarterly CRE Market Snapshot Series, which provides insight into activities that support commercial property dealmaking. The data presented in the Focus on Capital Markets and Investments are derived from the activities of the LightBox RCM platform and used to calculate the LightBox Commercial Property Listings Index. LightBox RCM is the industry’s leading go-to-market listing platform that powers investment sales, as well as debt and equity deals. As a trusted CRE technology solution, LightBox RCM offers a global marketplace for buying and selling CRE and increases the speed, exposure, and security of deals through one streamlined online platform. Brokers can leverage integrated property marketing tools, transaction management and business intelligence.
For more information about this report series or the data, email Insights@LightBoxRE.com
