Markets | Trends and Research

Have We Hit Bottom? New Data Suggests Now Is the Time to Reenter the Private Real Estate Market

AUG 28, 2025
Written by John Makarewicz

Introduction

After 18 months of rising interest rates, cautious lenders, and falling valuations, many real estate investors have been waiting for a clear signal that the worst is over.

According to a new report from CRE Daily, that signal may have just arrived.

The data suggests that the private commercial real estate market—especially multifamily—has likely found its floor.

If that’s true, then this could be one of the most advantageous times to invest in years.

The Evidence: Signs of a Recovery

Here’s what the latest data is showing:

Green Street’s CPPI has now increased for two straight months—the first time since the downturn began
Valuations in private markets have corrected ~21% from peak levels, creating more realistic entry points
Bid-ask spreads are narrowing, helping buyers and sellers actually get deals done
➤ Investors are adjusting to the “new normal,” and transaction volumes are starting to rebound

This isn’t speculation—it’s the kind of pattern we’ve seen in past market cycles just before values begin to rise again.

 

Why This Matters to Passive Investors

When markets shift, early movers benefit the most. And we’ve seen this story play out before: Here’s what the latest data is showing:

➤ In 2010, buyers who reentered early saw returns of 15%–20%+ IRRs
In 2020, apartment buyers who acted quickly gained huge upside in the following 24 months
➤ Today, interest rates are more stable, sellers are getting realistic, and the fear-driven hesitation is beginning to lift

At Faris Capital Partners, we believe this moment is the beginning of the next up-cycle—and we’ve structured our current acquisitions accordingly.

 

Our Approach: Act Decisively, Buy Intelligently

Our current multifamily acquisition, Faris Residences Newnan, was designed with the current macro conditions in mind. Here’s what that looks like:

Buying well below replacement cost
✅ Cash flow from day one
Immediate renovation upside
✅ No assumptions of rate drops or speculative rent growth
✅ Located in a landlord-friendly, high-demand U.S. market

We’re not betting on a boom. We’re executing a proven plan in the middle of a recovery—when timing matters most.

 

What Happens Next?

If this is the bottom—and the data suggests it may be—then the coming quarters will likely bring:

➤ A slow but steady return of capital to private deals
Cap rate compression as investor appetite returns
Rent growth recovery in supply-constrained metros
A competitive rush for quality assets

By investing now, you position yourself ahead of the wave—with more pricing power, stronger yield, and better risk-adjusted returns.

 

Don’t Miss This Window

We’re currently inviting investors to participate in a new value-add multifamily opportunity—in a market where supply is constrained, demand is rising, and acquisition prices are near their lowest point in years.

👉 Click here to reserve your priority access

Or book a no-pressure call to learn more and ask questions.

 

Final Word

Great investments aren’t made when the market feels safe—they’re made when the fundamentals are strong, but the sentiment is still catching up.

This may be that moment.

And we’d love to walk you through how to make the most of it.

real estate, market cycle, usa

Our mission is to help investors thrive regardless of what’s happening in the market.

If you’re feeling overwhelmed by economic uncertainty, let’s talk about how real estate can add clarity and confidence to your portfolio.

Ready to connect?

Book a call with our investor relations team today to learn more about current investment opportunities.

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