Property Valuations in 2025: What’s Changing in the Market?
As we move through 2025, the commercial real estate landscape continues to evolve—and with it, the way property is valued. At Citadel Valuation Group, we work with clients across Texas and Oklahoma to deliver accurate, lender-approved appraisals that reflect today’s market dynamics.
Here are some of the key trends and changes shaping property valuations this year:
1. Interest Rates Are Reshaping Cap Rates
While interest rates began to stabilize in late 2024, they remain significantly higher than pre-2020 levels. This shift continues to influence cap rates across all property types, particularly:
Retail strip centers and office buildings, which are experiencing increased vacancies
Multifamily and LIHTC properties, where investors are being more conservative with underwriting
Appraisers are adjusting valuation models to reflect these new expectations, especially for income-generating properties.
2. Land Is Holding Value in Strategic Growth Corridors
Despite some market cooling, land values in key development corridors—like suburban Austin, San Antonio outskirts, and secondary markets in Oklahoma—remain strong. Infrastructure improvements and migration trends are sustaining demand for:
Commercial development land
Rural acreage for residential or recreational use
Farm and ranch properties with long-term appreciation potential
Understanding these regional trends is key to an accurate land appraisal in 2025.
3. Environmental and Zoning Factors Are More Influential Than Ever
Sustainability and zoning changes are now front and center in property evaluations. Municipalities are updating land use plans, and ESG factors (Environmental, Social, and Governance) are becoming more relevant to investors and lenders.
Appraisers must account for:
Flood zone changes
Solar or renewable development potential
Limitations tied to new zoning overlays or density restrictions
These considerations can significantly impact a property’s current and future value.
4. Technology Is Changing How Appraisals Are Delivered
New software and data integrations are improving how valuation reports are compiled and delivered. Clients are expecting:
Faster turnaround times
Interactive or digital reports
Increased transparency in comps and adjustments
At Citadel, we leverage industry tech while maintaining the local insight and human judgment that high-quality appraisals require.
5. Customization Is Key
In 2025, there is no such thing as a "one-size-fits-all" appraisal. Lenders, investors, brokers, and property owners all need reports tailored to their goals:
Lending vs. estate planning
Tax appeals vs. acquisitions
Owner-occupied vs. investment properties
That’s why we approach every appraisal with precision, customization, and a clear understanding of the client’s needs.
Final Thoughts
Property valuation isn’t just about comps and math—it’s about understanding what’s happening in the market right now.
At Citadel Valuation Group, we bring together local market expertise, technical accuracy, and fast communication to help clients make smart decisions in a shifting landscape.
Looking for a trusted partner in 2025? We’re here when you need us.
Citadel Valuation Group
Commercial Appraisal Experts | Texas & Oklahoma
www.citadelappraisal.com
