Bridgewater Bank’s latest insights offer direction for real estate developers in 2025
Uptick in commercial financing requests
In a recent article for RE Journals, Dan Rafter shared insights from Nick Place, chief banking officer at Bridgewater Bank, on the uptick in commercial financing requests in 2025. The key takeaway? Developers and investors are stepping off the sidelines, and optimism is returning to the market. But what does this mean for developers navigating today’s challenges?
Changing market dynamics
Place noted that with easing interest rates and diminishing recession fears, developers and investors are increasingly re-engaging with the market. Their renewed confidence is evident across various asset classes, notably multifamily and industrial developments. At the same time, developers continue to grapple with borrowing costs and unknowns with construction costs as new tariffs take effect. Adaptability through strategies like value engineering and creative financing will be key for developers aiming to capitalize on this momentum.
Sustained demand for multifamily development
The multifamily sector continues to experience strong demand due to the tight single-family housing market and changing renter preferences. Renting has become a deliberate choice for many, underscoring the need for well-located, thoughtfully designed rental properties.
Resilience in the industrial sector
The industrial real estate sector remains robust with continuing demand for logistics and warehousing facilities. While leasing activities are normalizing to pre-pandemic levels, ecommerce keeps growing.
Recommendations for developers
To capitalize on this momentum, we recommend the following strategic approaches for the current market.
- Leverage public-private partnerships. Collaborations with government entities can facilitate development. These partnerships may offer benefits like tax credits, grants, or low-interest loans, aiding project feasibility.
- Embrace new technology. Integrating technologies such as artificial intelligence can improve operational efficiency and project management. Staying on top of technological trends can give you a competitive edge.
- Future-proof developments. Designing resilient properties can mitigate risks associated with extreme weather events and meet changing regulatory standards.
The road ahead
While no one can predict the future, the current trends suggest that strategic, financially disciplined, and forward-thinking developers will find opportunities in 2025. Bridgewater Bank’s insights highlight the importance of adaptability.
At DBS Group, we’re committed to helping developers bring projects to life in changing times. Our fully integrated design-build approach accelerates project timelines without sacrificing quality. By combining expert planning, smart procurement, and cost-saving value engineering, we help developers from concept to completion.
Whether it’s leveraging public-private partnerships, adopting cutting-edge technology, or building resilient properties, our team is equipped to turn industry challenges into opportunities—saving you time, money, and headaches along the way.
Let’s build something great together. Get in touch to start your next project.