Investor sentiment has always played a pivotal role in shaping market behavior–but how closely does it track with the reality painted by economic research and data?.

This report seeks to uncover that relationship, examining alignment and divergence between investor opinions (as captured in the 2025 Investor Survey) and insights drawn from broader economic and market research. Ultimately, this report isn’t about predicting the future—it’s about sharpening the lens through which we view it. By understanding where sentiment and data converge or

collide, stakeholders can make more grounded decisions in an environment that continues to be shaped by uncertainty, opportunity, and change.

Sector and Geographic Focus
The survey revealed strong investor tilt toward multifamily (39.5%), with retail, industrial, and self-storage tying for second place (each with 17%). Regionally, respondents skewed heavily toward the Southwest and Southeast, together accounting for nearly 47% of responses.

Regional Investment of Survey Respondents
This focus aligns well with current demographic shifts and economic migration trends, particularly in the Sunbelt states, and signals confidence in sectors tied to residential growth and warehousing logistics.

Economic Outlook: Between Optimism and Inflation Anxiety

Most investors rated their 2024 performance positively (76.5% rated it good or excellent) and expect to maintain or increase their investments in 2025. The rents and valuations experienced in Q1 2025 also mostly skewed higher or flat, supporting ongoing confidence.

However, research snippets show potential headwinds:

• GDP growth is exceeding forecasts–positive for investor confidence
• Inflation Indicators like CPI are rising–creating tensions with upbeat sentiment
• Recession predictions from economists suggest caution may be warranted

This mix of data supports a narrative of cautious optimism, with investor sentiment running ahead of emerging macro risks.

Operational Pressures & Key Risks
The most sharply rising cost? Insurance (62.7%), followed by maintenance (19.4%). This was echoed in anecdotal responses citing premium surges and budgetary strain.

Top risks identified include:

• Operational challenges due to economic slowdown (44.1%)
• Regulatory or political disruption (20.6%)
• Market oversaturation (17.6%)

Market Expectations & Sector Outlook

The majority of respondents expect flat or modestly positive CRE values and transaction volumes in H1 2025. Multifamily was seen as the best-performing sector, and office was overwhelmingly expected to perform the worst.

These views were consistent with market research, which paints a bleak picture for office but remains cautiously optimistic about multifamily and industrial due to structural tailwinds.

Monetary Policy: Navigating the Rate Environment

When asked about the Fed’s actions 56% of respondents expect a 50bps rate cut and only 11% believe there will be no cut

This consensus suggests high dependence on monetary easing to support valuations–despite CPI data suggesting inflation may delay or temper those cuts.

Investment Timing & Risk Appetite

While only 12.5% believe the first half of 2025 is the time to buy, nearly 48% expect better opportunities in the second half.

Risk preference appear to tilt cautiously aggressive:

• Many support equity exposure due to low yields
• Tariff concerns remain–but 38% believe developers will adapt
• Real estate and commodities were highlighted as key inflation hedges

Regulator, Political, & HUD Concerns

Respondents flagged potential bottlenecks from HUD workforce reductions: 34.4% predict delays in affordable housing
projects and 46.8% see redevelopment opportunities from federal footprint reductions.

Tax reform sentiment was notable optimistic: 60% believe tax changes would make CRE more attractive

A large majority of respondents expect tariffs to impact retail the most.

Downsizing the federal government footprint, will crate opportunities for redevelopment and investment (46.77%), lower property values by adding too much inventory to the market (32.26%), or will have little to no effect, as demand will remain stable 20.97%.

Geopolitical Factors: Risk Perception & Positioning

Investor caution was evident around global tensions and trade disruptions. Plus, emerging market election volatility.
Still, positive signals–like trade agreements–were seen as stabilizing forces. Investors appeared inclined toward domestic over global  exposure in times of political uncertainty.

Conclusion: Where Data and Sentiment Diverge

This report shows that while investor sentiment generally aligns with the macroeconomic and sectoral outlook, notable discrepancies exist– particularly around inflation risks, office sector exposure, and assumptions of policy support.

In a market shaped by rapid change and layered signals, the greatest advantage may come not from choosing sides–but from understanding both stories the market is trying to tell.

Get the full report here