CORFAC International’s first-half 2025 survey of members from 75 independent commercial real estate firms points to an upward trajectory for deals. When looking at the past six months, 67% of respondents said that deal activity had increased, compared to 35% of respondents in the last survey of 2024.
Industrial real estate continues to be the growth factor of CORFAC members’ business. Nearly 70% of respondents said it was a leading driver of business so far in 2025, and 56% said they expected it to be the leading sector in the second half of the year. In addition, 72% identified warehouse and distribution centers, continuing the trend from 2024 of those categories leading the way.
Members from 40 markets around the world identified positive employment trends (55%), population migration into their market (48%), and stabilizing interest rates (38%) as the three key factors that are having a positive influence on transaction activity. Members are noticing a strengthening of the office market after the post-pandemic slump. Two CORFAC deal highlights included the headquarters for Safelite AutoGlass – the largest office deal in the Columbus market—and a $24M class A office sale in Troy, Michigan.
Economic Uncertainty, Tariffs Dampen Positivity
The good news was tempered by some economic realities that are worrying members, including high costs of construction (66%), inflation and interest rates (60%), and local and national policies (40%). Multiple members mentioned the impact of tariffs causing volatility in the market. Some CORFAC respondents also mentioned lending challenges and the length of time to get deals done as headwinds.
“We’re pleased to see the strong uptick in deal activity in the first half of the year, but we also recognize the economic volatility that’s going to require a steadying force to keep that heading upward,” said Daniel Shindleman, CCIM, MRICS, of Bridgemer AG/CORFAC International and 2025 CORFAC President. “Collaboration and cross-market referrals have been the cornerstone of CORFAC’s mission since our founding and will continue to be our focus looking forward.”
To help their clients withstand market turbulence, while timing things right when deal opportunities arise, CORFAC member firms can provide trusted counsel. Their localized market intelligence is backed by global network that can put macroeconomic factors into context.