Investors Reposition as CRE Enters a “Generational Reset”

A new analysis from Cushman & Wakefield suggests that 2025 could mark the start of a “generational reset” for commercial real estate — a moment of rare opportunity for investors with patience and strategic focus. 

After years of rapid price appreciation driven by low interest rates and abundant liquidity, the tide has shifted. Property values have dropped 13–21% from their 2022 highs — among the steepest declines in decades. Historically, similar downturns in the early 1990s and post-2008 were followed by 7–10 years of strong price growth, suggesting that the current dip could set the stage for the next expansion cycle. 

For multifamily investors, this environment could present the best entry point in years. With construction costs up 43% since 2019, new development has slowed dramatically, making existing properties priced below replacement cost especially attractive. These dynamics could tighten supply over time, stabilizing rents and driving long-term appreciation. 

Cushman & Wakefield advises investors to stay disciplined — focusing on core and core-plus multifamily and office assets offering durable income streams and relative value. The message is clear: while uncertainty remains, today’s market may reward those who can see beyond short-term volatility and act decisively on long-term fundamentals.