Higher interest rates, oversupply, and rising costs have battered commercial real estate. Will 2025 be different?

iStock; Rebecca Zisser/BI

• Hurt by higher interest rates, commercial real estate should see a modest rebound in 2025.
• Lingering inflation, however, could complicate the recovery by pushing up long-term interest rates.
• Industrial warehouses, a star of the sector, is poised to stand out in 2025.

The commercial property sector has had a bruising few years as rising interest rates pushed down values, complicated refinancing deals for hundreds of billions of dollars of expiring mortgages...