How Opaque CRE Valuations Are Running Out of Road

October 8, 2025

There’s no such thing as a “spot price” in commercial real estate. Unlike stocks or bonds, real estate assets don’t trade continuously. There is no ticker. Each property is unique. Closing deals takes time. Pricing data is fragmented, delayed, and infused with enigmatic buyer and seller motivations. For these reasons it is often difficult to interpret. For industry professionals, this is a known dynamic. For many investors, it’s still not well understood. And that lack of understanding has left room for bad actors.

Real estate’s illiquidity and complexity mean credible valuations rely on a mix of data and professional judgment. In a system where performance fees or fundraising success are tied to asset values, the incentives can drive murky outcomes. Over time, this has allowed some firms to quietly push the boundaries by using outdated assumptions, selective data, or loosely governed internal models to present values that support a narrative rather than reflect the market.

But the environment is changing. Investors are getting smarter. Information is moving faster. Valuation, once viewed as a technical exercise, is emerging as a core governance issue. The push for transparency, timeliness, and defensibility is gaining ground. It’s not a question of if, but when.

A new generation of investors is helping accelerate this shift. Many of them come from capital markets backgrounds. They expect better data, more frequent reporting, and tighter alignment between valuation processes and governance standards. They’re not satisfied with vague methodologies or stale comps buried in the back of a quarterly report. They want clarity, objectivity, and accountability baked into the valuation process from day one.

Firms that are paying attention are already adapting. They’re investing in better data, deeper interpretive insights, strengthened valuation oversight, and more consistent and disciplined judgment. Not in response to pressure, but in anticipation of it. Not to create flashy numbers, but to build trust.

They’re not playing to inflate assets. They’re playing to protect them.

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Capright specializes in institutional valuation and advisory services throughout the United States. As a truly independent third-party, Capright has emerged as the leading provider mark-to-market valuations for many of the largest privately-owned commercial real estate platforms. In addition to valuation services, Capright offers NAV calculation, daily pricing, valuation process implementation, debt mark-to-market, option and JV interest valuation, compliance review, audit assistance, litigation support, and managed services. In partnership with several of the largest institutional investment managers and data platforms, Capright has pioneered industry-leading analytical tools to set higher levels of accuracy and credibility for assets requiring higher-frequency valuation compliance.

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