September CRE Market Trends: Liquidity and Lending

In our mid-year outlook, we described 2025 as a transitional year for CRE. A big part of that transition is liquidity returning to the market — through institutional capital, REITs, lending, and other sources. This month’s headlines point to signs of momentum across both debt and equity markets. 

Liquidity matters because it can underpin deal activity, support valuations, and give investors flexibility to enter or exit positions. A market that’s slow on transactions can only rebound if there’s enough liquidity to back it.

Of course, this list of news isn’t exhaustive. Dozens of CRE stories are published every day, and we encourage investors to follow a broad mix of real estate news as they (evaluate CRE opportunities). 

Non-listed REITs Stage a Comeback

Costar reports that most of the largest non-listed real estate investment trusts are raising more cash after three years of large-scale investor withdrawals. 

Why it matters: Improving inflows suggest investors may be ready to put capital back into real estate, which could potentially ease pressure on valuations and spur more deal activity. If the trend continues, non-listed REITs may play a larger role in providing liquidity to a market that has faced significant constraints. 

Commercial Real Estate Lending Rebound Continues

CBRE reports that CRE lending rose sharply in Q2 2025, with their Lending Momentum Index up 45 percent year-over-year. Alternative lenders and banks led activity, while CMBS lending more than tripled compared to a year ago.

Why it matters: Rising lending volumes may be another sign of improving liquidity. While uncertainty around policy and interest rates remains, broader lender participation may suggest the market is adjusting and capital is flowing through more channels than earlier in the cycle.

Office-to-Residential Conversion Near the White House

The Accolade, a (Crowd Street platform) deal developed by Foulger Pratt, recently wrapped up. The project turned a former Department of Justice building just one block from the White House into a multifamily property.

Why it matters: Conversions like The Accolade highlight how developers are finding new uses for older office buildings as demand shifts in downtown cores. Adding multifamily housing in high-profile locations supports urban revitalization efforts and diversifies areas long dominated by offices.

As the market continues to work through changes, we’ll be watching how liquidity, lending, demand, and deal activity develop. Expect a new piece in this series soon, with more headlines the Crowd Street team is tracking.