Washington, D.C. Among Top Targets for Commercial Real Estate Investment in 2025, CBRE Survey Finds

A recent survey of commercial real estate investors ranked Washington, DC as a top 10 target among U.S. metros. The market rose six spots to #4 in CBRE’s 2025 U.S. Investor Intentions Survey.

This significant jump in the rankings reflects strong positive sentiment surrounding the multifamily sector, which attracted over 70% of the interest of investors who indicated they are targeting the region—more than double any other sector.

“Multifamily investors are seeking opportunities for higher yields in the Mid-Atlantic region, due to strong fundamentals, including high rent growth, a tight development pipeline, and low volatility in the country,” said Martha Hastings, an Executive Vice President at CBRE specializing in multifamily sales in the Mid-Atlantic region.

Investors are strategically focusing on gateway markets offering discounts. Dallas maintains its position as the top market for investment for the fourth consecutive year, with Miami ranking second. Sun Belt markets continue to draw interest, with Atlanta, Raleigh-Durham, Austin, and Phoenix all ranking in the top 10 due to their growth potential.

Other Key Findings from CBRE’s 2025 U.S. Investor Intentions Survey:

• Investor Sentiment: 70% of investors plan to acquire more assets in 2025, driven by favorable pricing and the improving recovery of real estate fundamentals.
  
• Investment Recovery: Investors are broadly positive about the overall market and even more so about their own plans, with 75% anticipating a rebound in their own investment activity by the first half of the year and over half already experiencing recovery.
  
• Property Types: Investors are prioritizing high-quality assets, focusing on multifamily (75%) and industrial & logistics (37%). An increasing number of investors are targeting Retail and Office assets compared to last year.
  
• Preferred Strategies: Investors are adjusting their strategies to align with the evolving market cycle, with two-thirds favoring value-add and core-plus strategies. This indicates that investors are seeking opportunities that offer higher returns with lower risk amid a continued economic expansion. In line with this trend, opportunistic, core, distressed, and debt strategies have seen declines compared to the previous year.
  
• Biggest Challenge: Investors cite elevated and volatile long-term interest rates, higher operating costs and an uncertain path for interest rates as the top three challenges in 2025.