LightBox, a provider of commercial real estate data and technology, has reported a significant rebound in its January 2025 CRE Activity Index. The index, which is a measure of transactional momentum in the market, rose to 81.2. This marks a notable increase from December 2024, when the index was at 56.8, and is also higher than November’s 80.5 reading. The January index is also slightly above the same month in 2024, when the index was at 76.2. This suggests that there is renewed investor confidence and early signs of market stabilization.

The LightBox CRE Activity Index tracks commercial property listings, environmental due diligence, and valuation activity. These are all functions that support CRE transactions and serve as a leading indicator of deal activity. The index is normalized to account for variations in the number of business days per month.

In January, the index saw a particularly strong increase in Phase I ESA volume, which is a key component of the index. This was driven by increased deal flow in the industrial and multifamily sectors. The index also saw an increase in commercial property listings, following a seasonal dip. This suggests growing confidence among sellers and a potential narrowing of bid-ask spreads. Additionally, valuation activity picked up, which is often seen as a precursor to increased financing and refinancing activity.