Multifamily continues to stand out as a strong and stable investment, according to DLA Piper’s 2025 State of the Market Survey.
The law firm’s survey analyzed the views of commercial real estate leaders on the sector’s economic outlook, the attractiveness of various asset classes and investment markets, and their overall expectations for the next year during two separate waves—one between February and March and the second in May.
Overall, despite geopolitical and macroeconomic headwinds, survey respondents cited reasons for cautious market optimism, citing fundamentals and trends leading to attractive investment opportunities in several asset classes.
Wave 1 of the survey showed an almost even split between bullish and bearish sentiment at 52% and 48%, respectively. This marks a significant recovery from 2023 when 86% of respondents were bearish. The optimism was tempered in Wave 2 of the survey, with those feeling bullish dropping to 34% and those bearish rising to 66%.
“In early 2025, the market was in the process of regaining its footing after years of volatility. Pricing was beginning to adjust and stabilize, there were large amounts of capital ready to be deployed, and interest rates had come down from prior peaks,” said Bryan Connolly, chair of DLA Piper’s U.S. Real Estate practice. “External factors since then have injected a heightened sense of caution into the market, but we continue to see measured confidence for the months ahead.”
In Wave 1, 51% identified multifamily as the most attractive asset class, followed by data centers, 44%; logistics, warehousing, and cold storage, 38%; and Class A/trophy office space, 27%. As workers are returning to the office, 60% of Wave 1 respondents reported that they expect that to have a material impact on the industry, citing a return to pre-pandemic vacancy rates and more workers in the office more frequently.
Multifamily remained at the top of list for the second wave, followed by continued confidence in data centers. In addition, over 20% of respondents in both surveys cited affordable and seniors housing as attractive.
Other key findings from the commercial real estate survey include:
• 54% of respondents in Wave 2 predicted current and proposed tariffs to have a negative impact, while 41% said they don’t expect any impact;
• Interest rates were a concern in both waves, with 60% in Wave 1 and 66% in Wave 2 identifying high rates as a top concern for the year ahead. In addition, 41% in Wave 2 said they expect interest rates to increase in the next 12 months;
• In Wave 1, 31% predicted foreign investment would be strong, declining to 12% in the second wave; and
• Equity availability as a reason for confidence jumped from 5% in the first wave to 15% in the second, with 53% saying they believe more equity will be available within the next 12 months.
“While volatility and uncertainty may have increased, fundamentals ultimately still matter. We’re seeing investors focus less on the outside noise and more on identifying asset classes and locations that signal long-term value and resilience,” added Connolly. “That level of discipline is what could define success for commercial real estate in the second half of 2025.”
