In the past year, one phrase has echoed across boardrooms, investment calls, and industry headlines: “The market has slowed down because of high interest rates.” It’s an easy assumption to make, but it’s not the whole truth.
According to SVN International’s 2025 State of the Market Report, while rising rates have certainly reshaped deal dynamics, they haven’t stopped smart investors or landlords from acting. Instead, they’ve changed how deals are structured, where capital is flowing, and what buyers and tenants are prioritizing. The narrative of stagnation doesn’t match the reality of a market that is—though different—still full of opportunity.
Across the U.S., SVN data shows that cap rates have adjusted, lending standards have tightened, and many institutional investors have adopted more disciplined acquisition strategies. But these shifts haven’t frozen activity, they’ve clarified it. Buyers are becoming more selective, sellers are becoming more strategic, and landlords are reimagining their assets to stay competitive in this new environment.
Here in Ohio, we’re witnessing exactly that. Investors who once chased volume are now chasing value. Landlords are improving properties to command higher rents, repositioning aging buildings into high-demand uses like healthcare, mixed-use, or flex-industrial. Businesses are seeking stability and predictability, and that’s something experienced local advisors can deliver, even when rates are higher than in years past.
The reality is, commercial real estate has always adapted to economic cycles. What’s happening now is less about slowdown and more about recalibration. SVN International’s report notes that transaction volume dipped slightly in early 2024 but began to stabilize as inflation cooled and interest rates showed signs of leveling off. For well-positioned assets, especially in secondary and tertiary markets, demand remains robust, particularly in industrial, medical, and niche retail segments.
At SVN Summit Commercial Real Estate Advisors, we see this moment as one defined not by pause, but by preparation. Investors and owner-occupants are using this period to strengthen portfolios, lock in favorable leases, and position themselves for the next wave of market growth. Many of our clients are capitalizing on opportunities that were invisible during the hypercompetitive years of near-zero interest rates, off-market deals, flexible seller financing, or properties ready for adaptive reuse.
High rates don’t end opportunity, they simply change its form. We’re helping clients pivot from chasing the cheapest capital to securing the smartest capital. Deals are still happening, strategic, data-backed, and value-driven deals that align with long-term goals. The focus now is less on speculation and more on performance: cash flow stability, tenant strength, and asset resilience.
Ohio’s fundamentals remain solid. Job growth continues, infrastructure investment is rising, and companies expanding in logistics, healthcare, and advanced manufacturing are fueling new property demand. The State of the Market Report underscores that even in a tighter capital environment, regions with strong local economies, like ours, are poised to outperform.
The myth that “CRE is slowing down” under high interest rates misses the real story. The market isn’t stalled, it’s smarter. Investors are recalibrating, landlords are adapting, and advisors like us are guiding clients to thrive in this new, more disciplined phase of the cycle.
At SVN Summit Commercial Real Estate Advisors, we believe that clarity, not caution, drives results. While others wait for “perfect conditions,” we’re helping clients uncover opportunities in the market as it actually exists today. Because in commercial real estate, timing is about strategy, not headlines. If you need assistance from the industry’s experts, reach out to SVNSummitCommercial@SVN.com.