The Southeast is dominating the commercial real estate investment activity, capturing the largest share of projects and capital across the U.S., according to Agora’s 2025 CRE Industry Sentiment Report. The region accounted for 42.7% of projects in the first quarter and 66.2% in the second, along with roughly 30% of total capital during both periods.
Based on responses from 200 commercial real estate professionals—including investors, sponsors, and developers—Agora’s survey highlighted sharp regional and sector trends shaping the year’s investment landscape. The Southwest ranked second in project volume with 16.8% in the first quarter and 14% in the second, followed by the Northeast, which saw stronger capital flows despite slightly fewer projects. The Northeast recorded 22% of total capital in the first quarter and 25.2% in the second, securing the second-highest share nationwide.
In the Midwest and West, results were mixed. The Midwest raised 18.6% and 13.1% of total capital across the first two quarters, outpacing the West in funding, but the West maintained a higher number of projects—13.6% and 8.5% versus 12.1% and 5.1%, respectively.
By asset class, multifamily development continued to lead the market. The sector represented 31% of projects in the first quarter and 29.5% in the second, while securing 67.6% of total capital in the first quarter and 30.2% in the second. Mixed-use projects were far less significant, accounting for less than 1% of total activity in both quarters and a similarly small share of capital investment.
Industrial assets also lagged, comprising only 2.5% and 3.8% of projects and 6.7% and 3.6% of capital in the first two quarters. Office and retail struggled to gain traction. Office projects accounted for roughly 3% to 4% of development activity, while the latter captured just over 1% of developments and less than 2% of total capital. Hospitality investment was minimal, below 1% in both projects and capital.
Residential and “other” property types, such as land and car washes—categories not included in the initial sentiment survey—each made up about 30% of total market activity in the first half of the year, illustrating where some capital has shifted amid sector headwinds.
Across regions, raising capital remained a major challenge. Investors in the West and Northeast cited the toughest conditions, while sentiment in the Southwest was more positive. Agora’s data reflected those regional divides: the Southeast saw its capital share fall by 11.5% as fundraising tightened, while the Southwest’s share climbed 10.6%. Despite reported difficulties in the Northeast, capital raised there still increased 3.7% during the first half of the year.
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