Commercial real estate optimism grows for second half of 2025 despite rockiness

Article originally posted on Phoenix Business Journal on June 18, 2025

Although the first half of 2025 has proven rockier and more uncertain than many in commercial real estate were initially predicting, optimism for the second half is pervasive.

Industry surveys and economist reports suggest while the second half of 2025 will still have a fair amount of choppiness to navigate, investors may be more willing or able to move forward on deals amid another “new normal.”

“I think part of it is how to deal with uncertainty,” said Harry Klaff, principal and U.S. president at Avison Young.

Volatile tariff policy and trade disputes have been headliner topics for commercial real estate and the economy more broadly in the first half of 2025. While questions around where tariff policy ultimately will end up continue, groups that own or occupy real estate are gaining more certainty and confidence in moving forward on decisions.

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