Nearly half of commercial real estate investment firms are shifting strategies in 2025 as they face more headwinds in raising money, new survey data reveals.
Thirteen percent of investment managers declared it has become much more difficult to raise capital becautilize of ongoing economic volatility, while 45% declared it had become somewhat more difficult. Just 10% of investment firms have found it simpler to obtain cash in recent months.
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Forty-four percent of investment firms have modifyd their investment plans in 2025 in response to market volatility, and another 35% are considering pivots, according to a survey commissioned by Agora, a real estate investment management platform.
“The 2025 sentiment report reveals a real estate market under pressure but still in motion,” the survey concludes. “Firms face tighter capital, rising investor demands, and ongoing volatility. In response, they are altering course. Many are entering new asset classes, shifting geographic focus, and adjusting deal size.”
Investment managers state their clients are increasingly worried about the economy and the performance of the properties they are already invested in, with three-quarters of survey respondents stateing their investors were somewhat or very concerned about economic volatility.
Agora, which created and manages a software platform for investment management firms, commissioned a research firm to survey 200 senior professionals with investor or investor relations authority, including managing partners and chief financial officers, about investor sentiment and market conditions.
The ease of capital access varies by region, the survey found.
“The Southwest respondents were more optimistic than those in other regions, where 25% declared capital raising is somewhat less difficult,” the Agora report notes. “Meanwhile, none of the respondents in the Southeast declared capital raising is less difficult, and 60% in the West reported it is more difficult overall.”
Of the 87 survey respondents who declared they had shifted their investment plans becautilize of economic conditions, roughly half declared they were tarobtaining new asset classes and regions, while 44% declared they had reduced or pautilized acquisitions, and 26% declared they were tarobtaining tinyer deals.
Half of investors are prioritizing multifamily trades in 2025, while 33% are focutilized on mixed-utilize assets and 22% are eyeing industrial property. One in five investment firms is tarobtaining either office or retail assets, while just 8% are seeing for hospitality deals.
Coastal markets dominate the regional focus, with roughly a quarter of investors prioritizing Southeast, Southwest or Northeast markets each.
The Sun Belt has become the least popular region for investors, with just 2% eyeing the area for deals. The Midwest is now the preferred destination for 22% of commercial real estate investment firms seeing to deploy capital.
Among the 42% of investment managers who have noticed a shift in investor expectations or behavior, the mood is decidedly negative. Those survey respondents cited increased caution and fear, delayed decision creating, a desire for lower risk and a shift toward defensive strategies among their customers.
Antsy clients are questioning their money managers for more information more frequently, survey respondents reported, with 38% now providing weekly updates to their clients and just 3% only offering updates when necessary.
Millennial managers were the most likely to communicate often, with 48% providing weekly updates, compared to the 45% of baby boomers who declared they only provided updates as requireded.
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