Bidding dynamics stabilize over previous three months, July marks first improvement of 2025
Rhea-AI Summary
JLL (NYSE:JLL) released its Global Bid Intensity Index report, revealing the first month-over-month improvement in July 2025 since December 2024. The report indicates a stabilization in bidding dynamics and growing capital deployment in commercial real estate despite market uncertainty.
The living sector leads in bidding activity, while retail shows improved levels compared to last year. Office sector dynamics are improving with larger bidder pools and increased lender participation. Though Industrial and Logistics sectors face challenges due to supply chain uncertainty, the overall market shows resilience with stable property valuations and improving bid-ask spreads.
According to Ben Breslau, JLL's Chief Research Officer, investors are embracing higher risk tolerances and momentum is expected to pick up through 2025's second half, with early movers potentially gaining advantages in returns.
Positive
- First month-over-month improvement in Global Bid Intensity Index since December 2024
- Living sector maintains elevated bidding levels, leading major property sectors globally
- Retail sector showing improved bid intensity compared to last year
- Office sector experiencing growing bidder pools and increased lender participation
- Property valuations have generally held firm in year-to-date 2025
Negative
- Industrial and Logistics sectors impacted by supply chain uncertainty
- Recovery expected to be gradual after early 2025 moderation
- Market faces continued trade and geopolitical tensions
News Market Reaction – JLL
On the day this news was published, JLL gained 0.32%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
JLL's Global Bid Intensity Index, a leading indicator for transaction volumes, finds investors continue to deploy capital through market uncertainty
Powered by three sub-indices, JLL's Global Bid Intensity Index analyzes proprietary bid data across investment sales transactions to identify areas of acceleration or deceleration ahead of third-party data providers. In July 2025, JLL's Global Bid Intensity Index marked the first month-over-month improvement since December of last year, signalling a market-wide indication of more competitive bidder dynamics, following a period of more volatile bond markets and trade policy uncertainty.
"With no shortage of liquidity, institutional investors are returning to the market with more capital sources and a renewed appetite for real estate," said Ben Breslau, Chief Research Officer at JLL. "While further recovery is expected to be gradual after moderating earlier this year, borrowing costs and real estate values in most markets have stabilized, so we expect momentum to pick up through the second half of the year."
Despite increased market uncertainty brought on by tariff announcements, bid-ask spreads are improving toward healthy levels across multiple sectors. This is most evident in the living sector, where bidding dynamics remain at elevated levels and lead major property sectors globally. Retail bid intensity is at improved levels compared to earlier last year, driven by the sector's strong fundamentals. While supply chain uncertainty has impacted bidding intensity in Industrial and Logistics, Office bid dynamics are showing improvement, driven by growing bidder pools and greater number of lenders quoting on office loans.
With investors gradually accepting uncertainty as the new normal, amid sustained trade and geopolitical tensions, Breslau says this is leading some to embrace higher risk tolerances. "The attractiveness of CRE investments as a long-term store of value remains intact. As more investors move to a 'risk-on' mode, coupled with the exceptionally strong debt markets, we expect this will lead to continued growth in capital flows."
While investors remain focused on the potential economic impact of changing trade policies and geopolitical pressures, real estate capital markets are proving very resilient. As capital continues to invest through market uncertainty and favor growth-oriented sectors, there will be plenty of opportunities over the remainder of 2025. With some more tempering to the pace of acceleration of the real estate cycle than anticipated in the first half of the year, investors deploying capital through 2025 and into 2026 will likely see an early mover advantage in terms of returns—an advantage that will diminish as the cycle matures.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of
Contact: Jesse Tron
Phone: +1 212-376-1215
Email: jesse.tron@jll.com
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SOURCE JLL
FAQ
What did JLL's Global Bid Intensity Index show for July 2025?
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