Commercial real estate deal activity is at its highest point of 2025, with $27 billion in transactions, according to LightBox’s latest monthly CRE Dealmaking Report. This represents a strong September, capping a summer that defied typical seasonal slowdowns and set the stage for a robust fourth quarter.
After a modest dip in August, the LightBox CRE Activity Index climbed to a 2025 high of 116.8, driven by a late third-quarter surge in property listings and steady pipelines for environmental due diligence and appraisals — signals of continued market momentum heading into Q4.
Sixteen transactions over $100 million closed during September, a 23% increase from August. These included both stabilized assets and value-add portfolios and a large affordable housing portfolio that underscored ongoing demand for workforce housing. Nine-figure deals spanned industrial, multifamily, self-storage and medical office sectors, running 34% above the year’s monthly average as investors sought portfolio diversification and operational efficiency over single-asset exposure.
New York City and California produced the largest single-asset sales, while industrial and apartment capital concentrated in high-growth Sun Belt and Mid-Atlantic markets such as Florida, Virginia, Georgia and North Carolina — regions where pricing remained firm and liquidity went deeper.
Mid-cap transactions between $50 million and $100 million also rebounded, rising 18% in September to surpass July’s previous high. About half of these mid-cap trades were multifamily assets, including the $97.6 million sale of LINQ in San Jose.
Multifamily, retail and office properties dominated September closings, accounting for 64% of total transactions. Multifamily led slightly ahead of retail as investors targeted suburban, garden-style communities for value-add opportunities. Cap rates for multifamily assets have stabilized and financing remains readily available from multiple sources. A slowdown in new construction is also helping to support asset values, according to LightBox.
Grocery-anchored and open-air retail centers continued to attract strong investor interest, bolstered by durable net operating income and disciplined pricing that supported attractive yields. Investment in office properties remained highly selective, reflecting a market characterized by both “flight to quality” and distress. LightBox noted an expected uptick in note sales and loan modifications as lenders adjust portfolio exposures.
Industrial transactions accounted for 17% of the September market, supported by fewer project starts, normalizing vacancy, and positive rent growth. Land deals made up another 8% of total activity, as developers and homebuilders restocked sites in anticipation of future construction.
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