January 6th, 2025
By Scott Warren, CCIM, CIREC, Managing Director and Real Estate Broker
Commercial real estate isn’t just about buying and selling properties - it’s about building the foundation for growth, stability, and opportunity. As we move into the new year, it’s clear that this industry continues to drive economic development in ways that impact entire communities.
2024 was a year of resilience and momentum. I’ve seen firsthand how transforming underutilized properties into thriving spaces has revitalized neighborhoods and sparked new growth. Areas like Binghamton, Endicott and Johnson City have been prime examples of what happens when investors recognize potential and take action. Development has remained steady, and interest from buyers and sellers hasn’t slowed down - in fact, in the past few months, it’s picked up. Phones were ringing on Christmas Eve and again the day after Christmas. There was unusually high activity through the Holidays and marked a very strong ending to 2024. Right now, indications are that 2025 will be a very robust year. During most business cycles there are times that sellers need to sell for various reasons. Then there are times that we see Investors want to sell to take advantage of market conditions. In 2025 what we are seeing is both of those factors coming into play at the same time and during a time of decreasing interest rates. It signals potentially a very robust year in 2025 with above average turnover for all asset classes.
Commercial real estate plays a bigger role than most people realize. It creates jobs, generates tax revenue, and provides the spaces where businesses are built, and communities gather. It’s the backbone of growth, and we’re seeing that impact right here in upstate New York. From office spaces to multi-family developments, the market continues to evolve to meet demand - and investors are taking notice.
What excites me most is how adaptable this market is. Properties that were overlooked a few years ago are being reimagined as mixed-use spaces, tech hubs, and modern residential developments. That adaptability not only meets changing needs but also creates long-term value and stability.
Here’s what the numbers show - commercial real estate investment has grown steadily over the past five years. In the U.S., investment volumes increased by over 10% in 2024 alone, and we’re seeing similar trends locally. Office space demand is evolving with hybrid work models, while multi-family units continue to outperform expectations. Retail spaces are being repurposed to meet the rise of experiential businesses and service-based tenants, creating new opportunities for investors.
For example, in Binghamton, vacancy rates have dropped by nearly 12% over the past two years as new businesses move in. Investors who took action early are already seeing returns, and that momentum is expected to continue in 2025. Fast Company recently did a study and Binghamton is ranked as the third strongest housing market in the Nation going into 2025.
Looking ahead, 2025 has all the signs of being a year filled with opportunity. The demand for flexible, functional spaces is growing, and commercial real estate remains one of the most reliable ways to build wealth and make an impact. At SVN, we’re ready to help clients navigate the complex path of Buying, Selling or Leasing Commercial and Investment Real Estate - whether it’s expanding portfolios, repositioning assets, or spotting the next big investment.
To those thinking about entering or growing in the commercial real estate market - this is the time to act. Markets are shifting, and the opportunities we see today are setting the stage for long-term success.
2025 is shaping up to be a big year. Let’s make the most of it.
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