Knight Frank Global CRE Sentiment Index Q1 2025

After five quarters of negative sentiment, CRE leaders entered the year with renewed clarity and purpose. However, the uplift in sentiment was quickly moderated by April tariff announcements, a reminder that even well-earned confidence can falter when global signals turn. The following surprise 12 May announcement for a 90-day trade truce between the U.S. and China further underscores how real estate teams must continue to plan through the turbulence, incorporating agility, optionality and scenario-readiness at every level of their CRE portfolio.

Highlights:
⬩ Overall CRE sentiment has improved and crossed over to a positive value during Q1 2025
⬩ However, Trump's tariff announcements in early April dampened the early uplift and shows the fragility of any sentiment gains
⬩ A comparison of pre- vs. post-tariff sentiment shows a 1.01 drop in sentiment.  
⬩ For real estate teams, the challenge is not just to react—but to plan through the turbulence