MetLife Investment Management -Tue, 06/17/2025 - 16:13

U.S. Commercial Real Estate Chartbook June 2025

Executive Summary:

We were a year into the CRE recovery when April 2’s broad-based tariffs landed; policy-driven volatility likely to continue this summer and beyond.
Valuations remain compelling: over the next 12 months, we forecast 4.5% value growth in self-storage, 4% growth in retail, 2.0% growth in apartment, 2.0% growth in industrial, and 0.5% growth in office. Value growth should accelerate throughout 2026 as the construction completion void accelerates.
Construction costs, immigration restrictions, and NIMBYism are compounding housing affordability pressures — a spillover into CRE is likely next year.
Highest-conviction themes: net-lease retail, independent-living seniors housing, medical office and select residential segments.
Use caution in: ground up development (all sectors), value-add strategies (all sectors), student housing, full-service hotels, grocery-anchored retail.

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MetLife Investment Management

MetLife Investment Management and PineBridge Investments now have more to offer as a top-tier global investment platform. With more than 150 years of insurance heritage, we combine the strength of a global, top-tier investment manager with expanded capabilities across multiple capital frameworks. We offer life, property & casualty, reinsurance, and healthcare clients a broad range of total return, income, and yield-enhancing solutions. Backed by $122B in insurance Client AUM1, our expertise spans fixed income, private credit, real estate, equities, and multi-asset strategies. Our proprietary origination and structured deal flow help insurers improve liability alignment, balance-sheet resilience, and capital efficiency, supported by teams across 19 countries.

Madhavi Chugh, CFA
Global Co-Head of Insurance Solutions
madhavi.chugh@metlife.com
(609) 216-6691

Jeannine Heal, CFA
Global Co-Head of Insurance Solutions
jeannine.heal@pinebridge.com
(732) 778-4734

MetLife Investment Management
One MetLife Way
Whippany, New Jersey 07981

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