Commercial real estate activity is rebounding, reversing a seasonal dip in August thanks to a late surge in property listings, steady appraisal pipelines and continued strength in environmental due diligence.
In fact, LightBox’s September CRE Activity Index rose to 116.8, the highest level recorded so far in 2025. That’s up from 104.4 in August and 102.7 a year ago. The increase extends an eight-month streak during which the index has remained above the 100-point benchmark, signaling a healthy level of market activity.
The index reflects the market’s reaction to the Federal Reserve’s 25 basis point rate cut in mid-September, which LightBox said spurred deal activity and lifted investor sentiment.
According to LightBox data, commercial property listings surged 25% month-over-month as sellers re-entered the market, reversing two months of declines. Phase I Environmental Site Assessment (ESA) volume remained elevated—just below June’s peak—indicating consistent levels of pre-transaction and lending activity. Lender-driven commercial appraisals also rose 1%, suggesting growing lender confidence amid clearer rate trends.
“September’s rebound was both expected and encouraging,” said Manus Clancy, head of data strategy at LightBox.
“We’re seeing sellers return to the market and lenders gradually stepping up activity in response to the Fed’s easing. The combination of improved liquidity and rising confidence suggests that the August slowdown was a short-term lull, not a trend reversal.”
Still, the report noted several ongoing headwinds for the CRE market, including softening labor conditions, persistent inflation and the ongoing federal shutdown, which has added economic uncertainty. However, LightBox said that underlying demand across CRE segments remains strong and should help the market absorb these challenges.
“After months of cautious optimism, the September data show real follow-through,” Clancy said. “If rates continue to ease and credit conditions hold steady, we could see this recovery broaden into early 2026.”
Preliminary LightBox data shows that approximately $26 billion in commercial transactions closed in September, making it the busiest month of 2025. Deals over $100 million rose by 17%, while transactions between $50 million and $100 million climbed 26%, reflecting strong investor demand for well-located assets across multifamily, industrial and select office sectors.
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