2025 Commercial Real Estate Outlook: What Buyers & Sellers Need to Know in Hudson, WI and the Twin Cities

As we move into 2025, the U.S. commercial real estate market is showing renewed signs of life. According to CBRE’s 2025 U.S. Investor Intentions Survey, investor confidence is high, and capital is flowing back into the market. For those active in commercial real estate in Hudson, WI, Western Wisconsin, or the Twin Cities, this means opportunity is knocking—especially for multifamily and industrial properties.

Here’s what national trends mean for our local market.

Investor Confidence Is Back

The latest CBRE report reveals a promising outlook:

• 70% of investors plan to increase acquisitions in 2025

• 75% expect a market rebound by mid-year

• Interest spans across asset types: multifamily, industrial, retail, and office

What This Means for Western Wisconsin & Twin Cities:

• Increased buyer activity, especially for well-positioned assets

• More competition from out-of-state investors looking beyond primary markets

• A good time to list, especially if you own an attractive multifamily or industrial property

Even with interest rates still elevated, buyers are looking for long-term plays—and Hudson and surrounding areas are getting attention.

National Hotspots, Local Impact

Big coastal and Sun Belt cities like New York, Dallas, and Miami continue to attract capital. But the shift toward secondary and emerging markets is creating new opportunities right here at home.

Why Our Region Is Gaining Ground:

• More affordable pricing than top-tier metros

• Steady economic fundamentals in Hudson, Eau Claire, La Crosse, and St. Paul

• Lifestyle appeal and access to talent in the Twin Cities metro

Pro tip: If you’ve got property near transit, logistics centers, or universities, now might be the time to sell.

Multifamily & Industrial Lead the Way

According to the survey:

• 75% of investors are targeting multifamily properties

• 37% are focused on industrial and logistics

• Retail and office are also seeing renewed attention

What This Means for You:

For Sellers

• Multifamily units near job centers or schools are in high demand

• Industrial buildings near I-94, Hwy 12, or other logistics corridors are hot

• Expect shorter days on market and strong offers if your property is well-located

For Buyers

• Now is the time to act before prices climb further

• Look for value-add or core-plus properties that offer upside with moderate risk

• Competition is heating up—have your financing lined up

Retail & Office Are Bouncing Back

Don’t count out retail and office properties just yet.

Retail Rebound:

• Brick-and-mortar stores serving essential needs (grocers, pharmacies, clinics) are gaining traction

• Investors are recognizing long-term value in high-traffic locations

Office Outlook:

• Suburban office buildings with flexible layouts are back in play

• Investors are taking advantage of attractive pricing and more predictable tenant usage

Local example: In Hudson or Woodbury, a renovated office suite with good parking and tech upgrades can attract serious investor attention.

Strategic Buying Opportunities

2025 is shaping up to be the year for value-add and core-plus investments.

Ideal Targets:

• Older multifamily properties with room for updates

• Industrial buildings near growing transportation hubs

• Retail spaces that can be reimagined or re-tenanted

If you’re willing to make some improvements, there’s a good chance you can increase property value and returns significantly.

Challenges to Keep in Mind

While things are looking up, there are still a few headwinds:

• Interest rates remain high and could affect your ROI

• Operational costs (like maintenance and insurance) are rising

• Economic uncertainty could impact timelines for buyers and sellers

Local Tip:

If you’re buying or selling in Hudson or the Twin Cities, make sure your pricing and projections are grounded in current realities—not just past performance.

The 2025 Outlook Is Strong—Locally and Nationally

There’s real momentum building in commercial real estate this year. For buyers, there are smart opportunities to grab long-term value. For sellers, rising demand—especially for multifamily and industrial properties—means it may be time to list.

Ready to make a move in Hudson or the surrounding area?
 If you're thinking about buying or selling commercial real estate in Hudson, WI or anywhere in the Twin Cities metro, now’s the time to take advantage of this market momentum. Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area
 

Read the full article from The World Property Journal here: https://www.worldpropertyjournal.com/real-estate-news/united-states/new-york-city-real-estate-news/commercial-real-estate-news-cbre-2025-us-investor-intentions-survey-commercial-property-investor-data-for-2025-kevin-aussef-2025-commercial-real-estat-14353.php

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.