JLL's Global Bid Intensity Index stabilizes despite market uncertainty.

Despite market uncertainty, JLL's Global Bid Intensity Index shows that investor capital deployment in commercial real estate is stabilizing and growing in depth. Bidder dynamics are stabilizing, and property sector performance fundamentals are holding up, with asset valuations generally firm in 2025. The index, which analyzes proprietary bid data across three sub-indices, offers a real-time view of liquidity and competitiveness in private real estate capital markets.

Despite ongoing market uncertainty, JLL's Global Bid Intensity Index indicates that investor capital deployment in commercial real estate is stabilizing and growing in depth. The index, which analyzes proprietary bid data across three sub-indices, provides a real-time view of liquidity and competitiveness in private real estate capital markets.

According to the latest data from JLL [1], bidder dynamics have stabilized, and property sector performance fundamentals are holding up. Asset valuations have generally remained firm in 2025, even as investor sentiment has been tested. The stabilization in bidding dynamics comes as property sector performance fundamentals are holding up and asset valuations have generally held firm in year-to-date 2025, even with investor sentiment being tested.

Ben Breslau, Chief Research Officer at JLL, stated, "With no shortage of liquidity, institutional investors are returning to the market with more capital sources and a renewed appetite for real estate." Despite increased market uncertainty brought on by tariff announcements, bid-ask spreads are improving toward healthy levels across multiple sectors.

The living sector continues to show elevated bidding dynamics, while retail bid intensity has improved compared to earlier last year, driven by strong fundamentals. Office bid dynamics are showing improvement, driven by growing bidder pools and a greater number of lenders quoting on office loans. Industrial and Logistics sectors, however, have seen supply chain uncertainty impact bidding intensity.

Investors are gradually accepting uncertainty as the new normal, leading to higher risk tolerances. Breslau noted, "The attractiveness of CRE investments as a long-term store of value remains intact. As more investors move to a 'risk-on' mode, coupled with the exceptionally strong debt markets, we expect this to lead to continued growth in capital flows."

Private real estate is also showing signs of a robust recovery. Cohen & Steers [2] reports that private real estate, as measured by the NCREIF-ODCE index, has posted four consecutive quarters of positive returns. Lending standards for CRE acquisitions have loosened, and transaction volumes have increased for five consecutive quarters on a year-over-year basis.

In summary, the commercial real estate market is demonstrating resilience despite ongoing uncertainties. Stabilizing bidder dynamics, improved liquidity, and growing capital flows suggest a favorable environment for investors in the coming quarters.

References:
[1] https://finance.yahoo.com/news/bidding-dynamics-stabilize-over-previous-134400918.html
[2] https://www.cohenandsteers.com/insights/three-indications-private-real-estate-has-found-its-bottom/