2025 Real Estate Market Sentiment Survey

Seyfarth’s 2025 Survey examines the industry’s current market sentiment as it navigates a new administration, AI advances, shifting market fundamentals, and “new but old” workplace norms.

Among many key topics covered in Seyfarth’s 10th annual Real Estate Market Sentiment Survey, CRE executives weigh in on their top concerns, investment priorities, and other catalysts for change. Read on for key highlights, or download the full survey now.

Backed by 10 years of data and the insight of top lawyers from one of the largest real estate practices in the US, the survey analyzes evolving market trends to help stakeholders make informed decisions. While challenges remain, we share the optimism of participating executives.

Paul Mattingly

Partner and Real Estate Department Chair

Unwavering Optimism

CRE executive optimism reached a five-year high, with 87 percent confident about the year ahead.

Rate Realism

The significant rate cuts anticipated last year failed to materialize. In 2025, two-thirds of CRE executives believe that interest rates will decrease between 0-50 basis points. Only 10 percent of respondents believe that interest rates will decrease more than 50 basis points.

AI Aspirations

In 2024, 34 percent of respondents planned to adopt AI capabilities, and by 2025, 33 percent had followed through—closely aligning with expectations. Looking ahead, the CRE market is accelerating its tech adoption, with 59 percent planning to integrate AI in the coming year.

Mounting Concerns

Rising costs and market uncertainties dominate the minds of CRE executives heading into 2025. Interest rates remain the most pressing worry, with 83 percent identifying them as a key challenge, up from 70 percent last year. Concerns about construction costs have also climbed to 45 percent, and inflation continues to weigh heavily, with 43 percent of executives highlighting it as a major issue. The availability and affordability of property insurance is emerging as a significant concern.

Get the Full Survey

With 13 questions in total, our survey gauges the top concerns of real estate executives including owners, developers, investors, asset managers, brokers, lenders, and consultants. Download the full survey for charts and insights.

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Past Surveys

2025 marks the 10th year of our Real Estate Market Sentiment Survey. Download past surveys via the links below.