Date: August 27, 2025
The commercial real estate market is showing its first real signs of recovery in months. JLL’s latest Bid Intensity Index revealed that July recorded the first increase in competitive bidding activity since December 2024, signaling a shift in investor confidence.
Stabilization After Months of Caution
For much of the past year, uncertainty around borrowing costs, trade policy, and global economic conditions kept investors on the sidelines. July, however, marked a turning point as stabilized interest rates and resilient property values encouraged more active participation in property bidding.
JLL’s analysts note that while market activity remains below peak levels, the improvement reflects growing confidence that the sector may be entering a recovery phase.
Sector Highlights
The residential “living” sector continues to lead the way, supported by strong demand and limited supply. Retail properties are also benefiting from solid fundamentals, while office properties—long under pressure—have begun attracting larger pools of bidders and greater interest from lenders.
Industrial and logistics properties, on the other hand, remain challenged due to global supply chain uncertainty, which has tempered investor enthusiasm.
Signs of Renewed Investor Confidence
Analysts describe the shift as a move toward a “risk-on” mindset, with investors more willing to step into competitive bidding despite ongoing geopolitical and economic volatility. Debt markets have also remained supportive, providing the financing necessary to sustain renewed deal flow.
Outlook for the Remainder of 2025
The July rebound could mark the start of a more sustained recovery in commercial real estate transactions. If investor momentum continues through the second half of the year, competition for prime assets may intensify. Those who enter the market early may stand to benefit the most, while late movers could face tighter margins as bidding activity strengthens further.
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