
Real estate Where apartment rents may accelerate soonest
We believe falling supply and strong demand should spur stronger rent growth in the next year or two. Some areas will see strong rental gains faster than others.
It’s been a year of significant shifts in global trading and economic growth patterns. Tariffs and trade wars have disrupted global trade flows, contributing to slower growth in key economies. In this environment, we believe that real estate sectors with higher income yields and income streams that are less tied to the business cycle are best positioned to outperform.
Here are some key takeaways from our current outlook for commercial real estate (CRE) for the US and globally. For a deep dive into our post Labor Day 2025 outlooks, read US commercial real estate outlook and Global commercial real estate outlook.
In assessing the impacts of these trends on real estate investment returns, the starting point in terms of relative pricing and local interest rates is also important. For more detail and a deep dive into these key takeaways in our post Labor Day 2025 outlooks: US commercial real estate outlook and Global commercial real estate outlook.
We believe falling supply and strong demand should spur stronger rent growth in the next year or two. Some areas will see strong rental gains faster than others.
Its history of attractive long-term returns and inflation-beating income potential reinforces private real estate's place in today's portfolios.
Reduced cross-border investment in new US commercial real estate may impact US and global property sectors, markets, and assets differently.
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Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions, there can be no assurance that actual results will not differ materially from expectations.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised.
Generally, real estate assets are illiquid in nature. Although certain kinds of investments are expected to generate current income, the return of capital and the realization of gains, if any, from an investment will often occur upon the partial or complete disposition of such investment.
Investing in real estate typically involves a moderate to high degree of risk. The possibility of partial or total loss of capital will exist.
Investing in commercial real estate assets involves certain risks, including but not limited to: tenants' inability to pay rent; increases in interest rates and lack of availability of financing; tenant turnover and vacancies; and changes in supply of or demand for similar property types in a given market.
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