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Commercial Property Values Drive Optimism Around 2025 Investments, TD Bank Survey Finds

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TD Bank's recent survey at the CRE Finance Council Miami reveals optimistic outlook for commercial real estate investments in 2025, with 76% of professionals believing dropping property values will drive increased investment. The survey of 211 commercial real estate professionals highlights that 52% consider future interest rate reductions as the most significant market factor.

Key findings show that 68% of respondents predict return-to-office requirements will most impact the CRE market in 2025, with mixed-use properties expected to gain the most traction. While 70% expect rising housing material prices, only 32% believe this will affect new development investments.

Regarding technology and sustainability, 60% of professionals anticipate predictive analytics to have the biggest tech impact, followed by smart buildings (32%) and sustainability advancements (28%). Additionally, 55% believe smart buildings will be the most influential sustainability trend in 2025.

Il recente sondaggio di TD Bank al CRE Finance Council di Miami rivela un outlook ottimista per gli investimenti nel settore immobiliare commerciale nel 2025, con il 76% dei professionisti che ritiene che il calo dei valori immobiliari stimolerà un aumento degli investimenti. Il sondaggio, che ha coinvolto 211 professionisti del settore immobiliare commerciale, evidenzia che il 52% considera le future riduzioni dei tassi d'interesse il fattore di mercato più significativo.

I risultati chiave mostrano che il 68% dei rispondenti prevede che i requisiti di ritorno in ufficio influenzeranno maggiormente il mercato CRE nel 2025, con le proprietà a uso misto che si prevede guadagneranno maggiore slancio. Anche se il 70% si aspetta un aumento dei prezzi dei materiali per l'edilizia, solo il 32% crede che ciò influenzerà gli investimenti in nuovi sviluppi.

Per quanto riguarda la tecnologia e la sostenibilità, il 60% dei professionisti prevede che l'analisi predittiva avrà il maggiore impatto tecnologico, seguita dagli edifici intelligenti (il 32%) e dai progressi nella sostenibilità (il 28%). Inoltre, il 55% crede che gli edifici intelligenti saranno la tendenza di sostenibilità più influente nel 2025.

La reciente encuesta de TD Bank en el CRE Finance Council de Miami revela una perspectiva optimista para las inversiones en bienes raíces comerciales en 2025, con el 76% de los profesionales creyendo que la caída en los valores de las propiedades impulsará un aumento en la inversión. La encuesta, que incluyó a 211 profesionales del sector inmobiliario comercial, destaca que el 52% considera las futuras reducciones en las tasas de interés como el factor de mercado más significativo.

Los hallazgos clave muestran que el 68% de los encuestados predice que los requisitos de retorno a la oficina tendrán el mayor impacto en el mercado CRE en 2025, con propiedades de uso mixto que se espera ganen más tracción. Mientras que el 70% espera un aumento en los precios de los materiales de construcción, solo el 32% cree que esto afectará las inversiones en nuevos desarrollos.

En cuanto a tecnología y sostenibilidad, el 60% de los profesionales anticipa que la analítica predictiva tendrá el mayor impacto tecnológico, seguida de edificios inteligentes (el 32%) y avances en sostenibilidad (el 28%). Además, el 55% cree que los edificios inteligentes serán la tendencia de sostenibilidad más influyente en 2025.

TD 뱅크의 최근 설문조사는 CRE 재무 위원회 마이애미에서 2025년 상업용 부동산 투자에 대한 낙관적인 전망을 드러내며, 76%의 전문가들이 부동산 가치 하락이 투자 증가를 이끌 것이라고 믿고 있습니다. 211명의 상업용 부동산 전문가를 대상으로 한 이 설문조사는 52%가 향후 금리 인하를 가장 중요한 시장 요인으로 보고 있음을 강조합니다.

주요 결과에 따르면, 68%의 응답자가 사무실 복귀 요건이 2025년 CRE 시장에 가장 큰 영향을 미칠 것으로 예상하며, 혼합 용도 부동산이 가장 많은 관심을 받을 것으로 보입니다. 70%는 주택 자재 가격 상승을 예상하지만, 오직 32%만이 이것이 새로운 개발 투자에 영향을 미칠 것이라고 믿고 있습니다.

기술과 지속 가능성에 관해서, 60%의 전문가들이 예측 분석이 가장 큰 기술적 영향을 미칠 것이라고 예상하며, 스마트 빌딩(32%)과 지속 가능성 발전(28%)이 뒤를 잇고 있습니다. 또한, 55%는 스마트 빌딩이 2025년 가장 영향력 있는 지속 가능성 트렌드가 될 것이라고 믿고 있습니다.

Le récent sondage de TD Bank lors du CRE Finance Council à Miami révèle une perspective optimiste pour les investissements dans l'immobilier commercial en 2025, avec 76% des professionnels pensant que la baisse des valeurs immobilières encouragera une augmentation des investissements. Le sondage mené auprès de 211 professionnels de l'immobilier commercial souligne que 52% considèrent les futures réductions des taux d'intérêt comme le facteur de marché le plus significatif.

Les résultats clés montrent que 68% des répondants prévoient que les exigences de retour au bureau auront le plus grand impact sur le marché CRE en 2025, avec des propriétés à usage mixte qui devraient gagner le plus d'importance. Bien que 70% s'attendent à une augmentation des prix des matériaux de construction, seulement 32% croient que cela affectera les investissements dans les nouveaux développements.

Concernant la technologie et la durabilité, 60% des professionnels anticipent que l'analyse prédictive aura le plus grand impact technologique, suivie par les bâtiments intelligents (32%) et les avancées en durabilité (28%). De plus, 55% pensent que les bâtiments intelligents seront la tendance de durabilité la plus influente en 2025.

Die aktuelle Umfrage der TD Bank beim CRE Finance Council in Miami zeigt eine optimistische Aussicht auf Investitionen in Gewerbeimmobilien im Jahr 2025, wobei 76% der Fachleute der Meinung sind, dass fallende Immobilienwerte zu einer erhöhten Investition führen werden. Die Umfrage unter 211 Fachleuten für Gewerbeimmobilien hebt hervor, dass 52% die zukünftigen Zinssenkungen als den bedeutendsten Markt-Faktor erachten.

Wichtige Erkenntnisse zeigen, dass 68% der Befragten vorhersagen, dass die Anforderungen an die Rückkehr ins Büro den CRE-Markt im Jahr 2025 am meisten beeinflussen werden, wobei gemischt genutzte Immobilien voraussichtlich am meisten an Bedeutung gewinnen werden. Während 70% mit steigenden Preisen für Baumaterialien rechnen, glauben nur 32%, dass dies die Investitionen in neue Entwicklungen beeinflussen wird.

In Bezug auf Technologie und Nachhaltigkeit erwarten 60% der Fachleute, dass prädiktive Analytik den größten technologischen Einfluss haben wird, gefolgt von intelligenten Gebäuden (32%) und Fortschritten in der Nachhaltigkeit (28%). Darüber hinaus glauben 55%, dass intelligente Gebäude der einflussreichste Trend in der Nachhaltigkeit im Jahr 2025 sein werden.

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The survey found industry challenges won't stop investment into commercial real estate in 2025, but innovation and changing employee expectations will impact how investments are assessed.

CHERRY HILL, N.J.--(BUSINESS WIRE)-- Despite rising energy costs, office vacancies, interest rates and economic uncertainties as the industry adjusts to a new administration, recent insights garnered from TD Bank’s survey at the CRE Finance Council Miami found that commercial real estate leaders are still excited for the opportunities this year could bring. More than 200 commercial real estate professionals shared their 2025 outlooks, with 76% believing dropping commercial real estate property values will drive increased investment this year.

So, is Commercial Real Estate “Back"?

TD Bank's survey focused on sentiment surrounding the commercial real estate sector, along with what's driving investment. A few other survey highlights include:

- More than half of commercial real estate investors (52%) believe future interest rate movement – specifically lowering rates – will have the biggest impact on the sector, but just 14% expect the biggest business impact to come from changing policies and regulations of the new presidential administration.

- The majority (70%) of respondents expect housing material prices to rise in 2025, but only 32% expect it to have an impact on investing in new developments.

Return-to-Office Policies and Their Impact

As CRE professionals plan their 2025 investments, there’s a rising confidence among investors. That confidence could be driven by return-to-office requirements from companies across the U.S. In fact, the majority (68%) of industry professionals predict that return-to-office requirements are the business-level decision that will have the biggest impact on the commercial real estate market in 2025. However, many investors and property owners aren't expecting office work to match pre-Covid levels – instead, mixed-use spaces are expected to be the future. The survey revealed that more than two-thirds (68%) of CRE professionals expect mixed-use properties will garner the most traction in 2025.

“We’re experiencing a very modest recovery in parts of the office market, but that doesn't mean the industry should be quick to revert to its old ways. The office segment will continue to face challenges as a whole. As employees return to in-person work, they crave unique, meaningful workplace experiences that make coming into the office a positive experience,” said Hugh Allen, Head of U.S. Commercial Real Estate at TD Bank. “Investors and commercial real estate owners are taking these changing expectations into account when they invest in their next project. This includes amenities like in-office gyms, extended break rooms, and cafeterias – organizations want to create a sense of place for their employees, enhancing their return-to-work experience.”

Investment Interest at a Crossroads Amid Various Uncertainties

While the majority (70%) of commercial real estate professionals believe that the price of housing materials will rise again in 2025, they are divided when it comes to predicting how this will impact the market, with 38% anticipating continued investment and 32% forecasting an impact on the market’s ability to invest in new developments. Many investors have concluded this interest rate environment is the "new normal."

“The commercial real estate sector will face new challenges in 2025, and a new administration will bring wild cards to the market, but this analysis shows that the right investors are prepared to face those challenges head on,” said Hugh Allen. “Navigating the uncertainties regarding inflation and interest rates will be key to getting the timing right for investors to pull the trigger on acquisitions and developments.”

CRE’s Top-of-Mind Tech & Sustainability Initiatives

Along with properties, CRE professionals have their eyes on tech investment this year, especially predictive analytics. Three-fifths (60%) of industry professionals expect predictive analytics to have the biggest technological impact on CRE in 2025. This is followed by smart buildings (32%) and efficiency and sustainability advancements (28%), in-line with green initiatives in recent years.

"Technology will drive commercial real estate into its next era," said Allen. "The advancements in artificial intelligence and overall upgrades to how we use innovation in CRE will continue to bear positive outcomes for the investors who use them properly."

As energy costs continue to rise, more than half (55%) of industry professionals believe smart buildings and other technological advancements are the sustainability trend that will make the largest splash. That said, changes in the White House raise questions on the state of sustainability moving forward, with 30% of CRE professionals citing government environmental protections as the most significant sustainability trend in 2025.

Survey Methodology

This study was conducted at the Commercial Real Estate Finance Council Miami 2025 from January 12-15, 2025. A total of 211 commercial real estate professionals were polled.

About TD Bank, America's Most Convenient Bank®

TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.

TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.

Media:

Nick Villano

TD Bank

Communications Manager

Nick.Villano@td.com

Source: TD Bank

FAQ

What percentage of CRE professionals in TD's survey expect property values to drive investment in 2025?

76% of commercial real estate professionals believe dropping commercial real estate property values will drive increased investment in 2025.

How will rising housing material prices impact CRE investment according to TD's 2025 survey?

While 70% expect housing material prices to rise in 2025, only 32% expect it to impact investing in new developments.

What type of properties will see the most traction in 2025 according to TD's CRE survey?

68% of CRE professionals expect mixed-use properties to garner the most traction in 2025.

What technology will have the biggest impact on CRE in 2025 according to TD's survey?

60% of industry professionals expect predictive analytics to have the biggest technological impact on CRE in 2025.

How do TD survey respondents view return-to-office requirements' impact on CRE in 2025?

68% of industry professionals predict that return-to-office requirements will have the biggest impact on the commercial real estate market in 2025.

What sustainability trend will make the largest impact in CRE according to TD's 2025 survey?

55% of industry professionals believe smart buildings and other technological advancements are the sustainability trend that will make the largest splash.

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