After a slowdown earlier this year, commercial real estate (CRE) activity is showing signs of life again. According to JLL’s latest Bid Intensity Index, bidding activity picked up in July for the first time since December. This is a signal that capital is flowing back into the market and investor confidence is slowly rebounding, according to CNBC.
The index, which tracks competitiveness in private real estate capital markets, showed stronger deal-making dynamics as the number of bidders per deal stabilized, bid-ask spreads narrowed, and pricing became more consistent.
These are early but important signs that buyers and sellers are inching closer to agreement — a key indicator for future deal volume.
The office market, once written off after its COVID crash, is showing some surprising strength. Bidding activity is up, more lenders are quoting office loans, and investors are starting to sniff out bargains as return-to-office efforts gain traction.
JLL’s report suggests that investors are now adjusting to a world where uncertainty is simply part of the deal. With debt markets holding strong and property values stabilizing, a growing number of institutional investors are re-entering the market with fresh capital and a higher tolerance for risk.
