Global CRE Outlook, Recovery at Mixed Speeds 🌎

New RICS Data Shows Split-Level CRE Sentiment

Author

Anne Morgan
November 13, 2025

Hey there,

Ever wonder why global CRE feels uneven right now? Markets are shifting at different speeds, AI is reshaping decisions, and operators are finding new revenue in the gaps between long and short stays.

Settle in to explore what is driving the divergence and where the smartest teams are leaning in.

📰 Upcoming in this issue

  • 🌍 Global CRE Is Out of Sync, RICS Finds

  • 🤖 When AI Is the Arbiter, Humans Still Matter

  • 🏢 Midterm Stays Emerge as Multifamily’s New Profit Center

🌍  Global CRE Is Out of Sync, RICS Finds

The latest RICS monitor shows commercial markets moving at different speeds, with occupier demand and capital values diverging sharply by region and sector.

Key Takeaways:

  • 📈 Selective Strength: Industrial and logistics post firmer demand and rental growth in several regions, while legacy offices remain under pressure.

  • 💸 Rates Still Bite: Higher borrowing costs keep investment enquiries cautious, with pricing most resilient for prime, well-leased assets.

  • 🌎 Regional Divergence: North America and parts of Europe stabilize, while several Asia-Pacific markets report softer sentiment and slower deal flow.

  • 🔄 Repricing Continues: Expectations point to further cap-rate expansion in weaker segments, prompting a value-add focus and recapitalizations.

🤖 When AI Is the Arbiter, Humans Still Matter

AI speeds decisions in CRE, yet judgment, accountability, and trust remain human work. This piece maps where people step in and how to design the handoffs.

Key Takeaways:

  • 🧭 Define Decision Rights: Teams specify which calls AI makes and which humans own, with clear escalation paths and final accountability.

  • 🔍 Demand Explainability: Models provide reasons, inputs, and confidence scores, so reviewers verify outcomes and correct errors quickly.

  • ⚖️ Guard Against Bias: Governance checks data sources, fairness metrics, and drift, reducing harmful patterns before they reach tenants or investors.

  • 📏 Measure and Improve: Leaders track accuracy, speed, and business impact, retraining models and updating playbooks as portfolios and markets change.

🏢 Midterm Stays Emerge as Multifamily’s New Profit Center

Operators tap 30–90-day “in-between” rentals to boost occupancy and smooth seasonality. Corporate travel, insurance relocations, and healthcare staff fuel steady demand.

Key Takeaways:

  • 📈 Demand Drivers: Corporate projects, insurance claims, and traveling clinicians sustain bookings that traditional leases and short stays miss.

  • 💵 Revenue Mix: Midterm rates lift NOI, stabilize shoulder periods, and reduce marketing churn compared with constant short-stay turnover.

  • 🛠️ Ops Playbook: Furnish selectively, bundle utilities and Wi-Fi, set monthly cleaning cadence, and tighten screening to protect assets.

  • ⚖️ Compliance Focus: Align minimum terms with local rules, document taxes and lease language, and use trusted channels for verified tenants.

📊 Take This Edition’s Poll:

This or that: where AI should sit in your investment/ops decisions today

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Why It Matters

Understanding regional splits and sector-level strength helps investors and operators place cleaner bets with fewer surprises. Blending human judgment with AI guardrails builds trust in decisions and keeps portfolios resilient as conditions shift.

Midterm stays show how adaptable operators turn uncertainty into steady income.

Catch you in the next issue,

Anne Morgan
Editor-in-Chief
Commercial Real Estate Weekly

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