Video—12.09.2025

Private Real Estate Dashboard 3Q25

​​Vice President Alexandra Winrow shares what’s driving the private real estate market in 3Q25 and the five key indicators that Clarion Partners has been keeping a close watch on. ​

Video Transcript

Hi, I'm Ali Winrow with Clarion's 3Q 2025 dashboard — a quick snapshot of the Private Real Estate Capital Markets.

This quarter, we continue to see signs of market improvement.

With a new cycle commencing, we believe property types driven by demographics and innovation are expected to outperform.

Let's start with the new construction starts indicator. New starts are set to drop 40–50%, as rising costs, slower rent growth, and tighter capital are reshaping supply in both residential and industrial sectors.

Turning to debt and liquidity, spreads have narrowed from the prior peaks when rates were rising and initial tariff announcements were released.

Liquidity in the private real estate markets continues to improve as transaction volumes, while still below long-term averages, are stabilizing. 

Public markets, which often lead private valuations thanks to their liquidity, have bounced back after a dip from higher interest rates, and private real estate is beginning to show modest positive returns.

At Clarion, we're keeping a close eye on all these trends to guide strategic investment decisions.

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