Rockson Advisory’s Year In Review: Thriving on the Real Estate Rollercoaster into 202

[Alexander Szikla]

As we welcome 2025, we’re grateful for your continued trust in our market insights. This year promises fresh opportunities in commercial real estate — and we’re here to help you navigate them. Over the last year, we noticed a few key trends worth highlighting:

Market Recovery Signs:

• Loan volumes reached $539 billion in 2024, up 26% year-over-year. This included some landmark deals including Rockefeller Center’s $3.5B loan and Miami Beach’s Fontainebleau $1.2B refinancing
• Alternative lenders filling traditional banking gaps with short-term solutions which has already begun a cycle of consolidation that will likely continue and accelerate in 2025

The Office Sector Divide:

• CBD property values are down 50.7% from 2021 peaks
• Class A office properties seem to be in their own vacuum of prosperity with trophy properties commanding premium rents ($100+ PSF nationally, up to $247 in top markets) with strong occupancy
• Hybrid work continues impacting older building valuations which have not faired as well, but this may begin to rebalance as more companies are instituting mandates to return to physical offices

Challenges & Opportunities:

• $1 trillion in loans maturing by 2026
• Interest rates up from 3.5% (2021) to 6.74% (2024)
• Experts such as AEW’s Michael Acton and Blackstone’s Nadeem Meghji see the best entry point in the last 15–20 years and we agree

Market Outlook:

Current market conditions present unique opportunities, with inflation-adjusted prices at historic lows and yields at decade highs. Industry experts suggest the current uncertainty creates ideal investment conditions for those willing to enter the market.

As we step into 2025, we wish our valued readers prosperity in their investments, clarity in their decisions, and success in seizing the opportunities ahead. May this year bring you strategic wins and profitable ventures in an evolving market landscape.