Selling a commercial property on the Mississippi Gulf Coast – especially in hotspots like Biloxi, Gulfport, Ocean Springs, or Pascagoula – is all about timing. Market conditions in 2025 are shaping up favorably for owners of retail and multifamily investment properties. From surging tourism and casino expansion to steady population trends and economic incentives, several factors signal that 2025 may be an ideal window to maximize your sale. In this guide, we’ll dive into the 2025 real estate forecast for Gulfport-Biloxi, local trends, and key drivers so you can decide when to sell your commercial property in Biloxi or elsewhere along the Coast for the best outcome.
Overall, the 2025 real estate forecast for Gulfport and the Mississippi Coast is cautiously optimistic. Industry experts anticipate a year of stable or modest growth in property values as the market adjusts to interest rates and economic currents. In fact, commercial real estate analysts note that 2025 is poised for steady retail growth and resilient multifamily performance . Mortgage interest rates, which spiked in recent years, have begun to level off – by spring 2025 rates had dipped about half a percent from the prior year’s peak . This slight easing in borrowing costs is good news for sellers, as more buyers can secure financing, bringing buyers and sellers closer on pricing expectations .
For the Gulf Coast region, home sales and prices have been on an upswing despite some headwinds. As of early 2025, the average home price across the broader Mississippi Coast area reached around $274,000, reflecting sustained demand . Springtime usually brings a seasonal boost in real estate activity, and 2025 is no exception – local realtors report an uptick in inventory, sales, and pricing as the Coast’s popularity grows. Importantly for commercial investors, interest rates are stabilizing rather than climbing, and that predictability is bolstering buyer confidence. While concerns like high insurance costs and recession chatter linger, the consensus is that the Coast’s real estate market will remain strong through 2025 .
If you own an apartment building or other multifamily asset on the Mississippi Gulf Coast, 2025 offers a relatively balanced market for a sale. The Gulfport–Biloxi apartment sector is demonstrating stability, underpinned by a diversified local economy (tourism, military bases, ports, and more) and limited new construction. As of late 2024, average asking rents stood at about $1,087 per unit with a vacancy rate of 7.9%, and year-over-year rent growth around 4% . That moderate rent increase and mid-single-digit vacancy signal a healthy equilibrium of supply and demand. In fact, new development has been minimal – only roughly 144 units were under construction in the entire Gulfport-Biloxi metro at the end of 2024 . With little new supply on the horizon, existing properties face less future competition, which can support their values.
Buyer demand for multifamily properties on the Coast has been quite robust leading into 2025. Over the last 12 months, approximately $130 million in apartment assets (2,414 units across 19 transactions) traded in the Gulfport-Biloxi area, indicating active investor interest . These multifamily sales on the Mississippi Coast show that investors are attracted to the region’s relatively affordable prices and solid yields. Many buyers value the stability of this market – supported by steady employment from major local employers like Ingalls Shipbuilding (11,000 jobs in Pascagoula) and Keesler Air Force Base (6,700 jobs in Biloxi) . For a potential seller, this means liquidity is available: there are qualified buyers in 2025 seeking apartment buildings, from smaller complexes to large communities, especially if the properties offer reliable cash flow.
One consideration for timing: National forecasts suggest multifamily fundamentals will stay positive in 2025 but may not accelerate dramatically. Freddie Mac’s outlook anticipates continued rent growth (albeit below long-term averages) and a modest uptick in vacancy rates as the market digests new supply in some regions. Importantly, cap rates have flattened out – meaning property values aren’t skyrocketing like they did in 2021, but they’re holding steady despite higher interest rates . For Mississippi Gulf Coast owners, the takeaway is that 2025 could be a sweet spot to sell multifamily: conditions locally are strong and demand is high, yet over the next couple of years vacancies might rise slightly as the market normalizes. Listing before any significant softening occurs can help you lock in a great price while investor optimism is still high.
Owners of shopping centers, storefronts, or other retail properties in Biloxi, Gulfport, and neighboring cities are also well-positioned in 2025. Understanding retail investment property timing is crucial in this market, because Gulf Coast retail fortunes tend to track tourism and local spending patterns closely. The good news is that tourism is booming and consumer activity remains healthy along the Coast. In 2023, Mississippi welcomed a record 43.7 million visitors who spent $11.5 billion – the largest tourism figures in state history. Coastal Mississippi (the three-county region around Biloxi/Gulfport) alone accounts for roughly 30% of the state’s tourism revenue, pulling in about $2.7 billion annually . By 2025, the region is exceeding expectations in hospitality growth, with new hotels opening ahead of schedule to meet demand . This influx of visitors bolsters retailers from casinos and restaurants to beach shops and malls.
Crucially, the Mississippi Gulf Coast enjoys a dual customer base for retail: a steady local population plus seasonal tourists. Well-located retail centers that cater to both groups have proven resilient. Investors know this, and we see it reflected in retail property values and cap rates. Retail centers anchored by essential services (like grocery stores or pharmacies) remain especially attractive. In the Biloxi area, cap rates for retail properties range approximately from 6.6% to 8.5%, indicating healthy investor confidence and solid pricing for sellers . These cap rates are relatively higher than in many larger metros, which actually draws yield-seeking buyers to the area – another reason demand for retail assets on the Coast has stayed strong.
Timing the sale of a retail property can hinge on local economic cycles. Given the 2025 outlook, many indicators are positive for retail. Consumer spending is buoyant, thanks in part to low unemployment and rising incomes in Mississippi. The state’s economy is on an upswing, and Governor Tate Reeves has announced over $110 million in new investments in infrastructure, workforce training, and tourism development statewide , which will further stimulate local commerce. Meanwhile, big developments on the Coast are drawing even more traffic: for example, the much-anticipated opening of Mississippi’s first Buc-ee’s mega-travel center in Harrison County in mid-2025 is expected to create 200 jobs and draw a huge influx of travelers off I-10 . New nearby businesses are already preparing for the bump in customer traffic . For an owner of a retail strip or outparcel in the vicinity, that means increased foot traffic and sales – factors that could boost your property’s valuation. Even if your retail property isn’t near the new Buc-ee’s, it’s illustrative of the wider growth trend: tourism and new attractions are expanding the economic pie for retailers coast-wide.
All these conditions suggest that 2025 is a strategic time to consider selling a retail investment property. You can market the asset on the strength of current cash flows and the promising local economic story. With investor demand solid, you’re likely to find interested buyers, whether they’re local or out-of-state investors attracted by the Coast’s rising profile. Just as with multifamily, waiting too long carries risks – if interest rates tick up again or if the economy slows in the future, retail spending could soften. Selling into a hot market when buyers are optimistic about tourism and growth allows you to capitalize on peak conditions.
Market timing on the Mississippi Gulf Coast isn’t just about national trends – local regional drivers in 2025 are critically important. Here are some key factors by area that sellers should factor into their decision:
• Casino Expansion in Biloxi: The casino and gaming industry is a bedrock of the Biloxi economy, and it’s gearing up for growth. In late 2024, regulators approved a new casino resort site in East Biloxi (the Tullis Hotel and Casino), signaling potential future expansion of gaming venues . While another proposed resort (the Tivoli project) is on hold due to legal challenges ，the overall trajectory is clear – Biloxi’s casino scene is investing for the future. New or expanded casinos mean more jobs, more tourists, and higher demand for nearby real estate (from hotels to retail strips). If your property is near these development zones, you could see increased value. Even beyond Biloxi, the Gulf Coast’s gaming sector (12 casinos strong from Gulfport to Bay St. Louis) is a huge tourism magnet, driving consistent visitor traffic that lifts many commercial properties.
• Tourism and Seasonality: The Coast’s tourism cycles can inform when to sell. Peak tourist season runs spring through summer, when beaches, festivals, and casinos are at full capacity. Some sellers choose to list after peak season numbers are in, so they can demonstrate strong revenue (for example, if you own a vacation rental portfolio or a restaurant property). However, 2025 is expected to be robust year-round. Tourism officials say Mississippi has far exceeded post-pandemic expectations, with visitor counts in 2023 and 2024 breaking records . Coastal attractions from the Barrier Island excursions to the new Mississippi Aquarium in Gulfport keep drawing crowds. Even an Amtrak passenger rail line is slated to restart service in 2025 connecting New Orleans to Gulf Coast cities (with stops in Bay St. Louis, Gulfport, Biloxi, and Pascagoula) , which could open the floodgates for more weekend tourists and day-trippers. As a seller, riding this wave of tourism momentum is wise – strong visitation bolsters the performance metrics that savvy buyers look for (rent rolls, retail sales figures, etc.).
• Population Growth and Migration: The Mississippi Gulf Coast has long been called the “Secret Coast,” known for its affordable coastal lifestyle. That secret is getting out. Local realtors observe that more buyers from out-of-state are discovering the area, drawn by the relatively low cost for beachfront living . Retirees in particular see that their dollars stretch further here than in Florida or other pricier coastal areas . While Mississippi’s overall population growth is modest, the Coast is benefiting from net in-migration of people seeking a lower cost of living and mild climate. Additionally, some residents are relocating within the region – for instance, moving a bit inland (north of I-10) to avoid high insurance costs on the immediate shoreline . This can shift demand pockets but overall indicates a stable to slowly growing population base for the area. More residents mean greater demand for housing (good for multifamily landlords) and more customers for local businesses (good for retail). It’s a positive sign when considering a sale: a growing market attracts investors.
• Economic Development and Incentives: Major economic developments can create prime moments to sell, and 2025 has several such catalysts. The state and local governments are aggressively courting new businesses with incentives, and it’s paying off. The Mississippi Development Authority and other agencies have funneled tens of millions into Gulf Coast projects, from port improvements to industrial park upgrades . For example, the Port of Gulfport and Stennis Space Center in Hancock County are seeing new investments that promise job creation. Additionally, established employers are expanding: Ingalls Shipbuilding in Pascagoula continues to secure large Navy contracts, and Chevron’s Pascagoula refinery remains a stalwart economic engine. Even the hospitality sector is reinvesting – the IP Casino Resort in Biloxi announced a $3.6 million renovation of its hotel suites to attract higher-end visitors . On the transportation front, the new Gulf Coast passenger train service mentioned earlier is backed by federal and regional funding, aiming to boost commerce and connectivity . All these moves create a halo effect, driving up demand for commercial real estate. An investor buying your property will be inheriting this upswing, which is a strong selling point. Be sure to highlight any nearby projects or incentives that benefit your property (for instance, if you’re in an Opportunity Zone or a tax-advantaged district, or near a new infrastructure project).
• Insurance and Climate Factors: One unique factor on the Gulf Coast is the cost of property insurance. Hurricanes and flood risks are an ever-present concern, and insurance premiums in coastal Mississippi have been rising. In fact, local experts have dubbed the current situation an “insurance crisis,” noting that insuring older properties can be markedly more expensive than new construction built to latest codes . This is causing some buyers (residentially) to favor new homes or move slightly inland . As a commercial property owner, you should be prepared to address insurance costs with potential buyers. High carrying costs might deter some buyers or lower offers, but there’s a flipside: if your property is newer or has mitigated risk (hurricane shutters, elevated foundations, etc.), you have a competitive advantage. From a timing perspective, insurance costs are not expected to drop dramatically in the near future, so 2025 won’t be worse on this front than it is now. If anything, selling before insurance rates potentially spike further could be beneficial. Additionally, in the eyes of a buyer, locking in a coastal property now means they assume that risk going forward – some investors are willing to do so given the strong cash flows, but others may not. Thus, if you personally feel overexposed to storm risk or rising insurance, it may be prudent to sell sooner and perhaps reinvest in a less volatile market via a 1031 exchange.
Every investor’s situation is unique, but several strategic considerations point to 2025 being an opportune time to sell commercial property on the Mississippi Gulf Coast:
• High Buyer Demand and Improving Liquidity: The tail end of 2024 into 2025 has seen an increase in real estate transaction volume nationally, after the lull of higher interest rates. Buyers are back in the market looking for deals, and the Mississippi Gulf Coast is on more radar screens than ever. The gap between what sellers want and what buyers will pay is narrowing as interest rates stabilize . In practical terms, if you list your multifamily or retail property now, you’re likely to get interest from multiple qualified buyers – including local investors expanding their portfolio and out-of-state buyers chasing yield. Strong demand often means higher sale prices and a quicker sale.
• Peak Performance and Financials: You always want to sell when your property’s financial performance is strong. Thanks to the booming local economy, you may find that your rental revenues or sales figures hit a high in 2024 and early 2025. For instance, if your apartment complex enjoyed a jump in rent or your retail center has full occupancy with renewed leases at higher rates, those numbers will look great in offering memoranda. Savvy buyers will underwrite future growth more conservatively, so proving a solid trailing-12-month income is key. If 2025 is a banner year for your NOI (Net Operating Income), that could translate into a premium sale price. Holding out for 2026 or 2027 might not yield the same if vacancies rise or if competition increases. Remember, commercial real estate values are largely income-driven – take advantage of a high-income moment.
• Interest Rate Outlook: The interest rate environment is a huge factor in commercial real estate pricing. As of 2025, we appear to be at or near the peak of the rate cycle, with some analysts predicting modest rate declines going forward. The Federal Reserve has signaled a potential pivot, and forecasts suggest the 10-year Treasury rate could ease to around 4% by late 2025 . If rates do indeed dip, more financing will free up and cap rates could compress slightly (meaning prices inch up). However, these macro changes tend to be gradual. The key is that 2025’s interest rates are no longer a wild card – both you and buyers can underwrite deals with more certainty than a year ago. This environment allows you to sell into a stable market rather than one in flux. Plus, if you plan to use a 1031 exchange to buy another property, doing so in a steady rate environment is easier to execute.
• Future Market Risks: While the current outlook is bright, no one has a crystal ball. There are some clouds on the horizon that might make waiting riskier. For one, new construction could pick up by 2026–2027 if developers respond to the strong market – the Coast has plenty of land, and any big surge in new apartments or retail centers could apply downward pressure on existing asset values. The absorption forecasts for the Gulf Coast multifamily market actually show negative absorption in the later 2020s (more units than renters), which would push vacancies higher. Selling before such a dynamic kicks in would be wise. Additionally, broader economic cycles are unpredictable – a recession in late 2025 or 2026 (even a mild one) could cool investor enthusiasm and soften property values. We’re in a sweet spot now where the economy is still growing, but as the expansion ages, risks increase. If you have been holding your property for a long time and have built up significant equity, it may be prudent to harvest those gains now rather than gamble on extending the cycle.
• Personal and Strategic Goals: Finally, consider your own goals. Are you aiming to retire or liquidate assets? Do you have a higher-performing investment opportunity elsewhere (perhaps you want to trade up via a 1031 exchange into a larger property or move capital to a different region)? If so, 2025 could be the ideal time to make that transition. On the flip side, if your property still has a lot of unrealized potential (e.g. you have vacant space you can lease up or you were planning a renovation to increase rents), you might delay a sale to first unlock that value. But keep in mind the market conditions that are favorable now. Strike while the iron is hot – especially if your property is already performing at its peak and you’re essentially betting on external market appreciation by holding longer.
In summary, the Mississippi Gulf Coast’s commercial real estate landscape in 2025 offers a promising stage for sellers, particularly those with retail and multifamily properties in places like Biloxi, Gulfport, Ocean Springs, and Pascagoula. The region is benefiting from a confluence of positive trends – record tourism inflows, expanding casinos, new infrastructure (like rail service and travel centers), and economic development initiatives – all of which drive demand for real estate. At the same time, interest rates have begun to stabilize, giving buyers more confidence and improving pricing for sellers.
If you’ve been contemplating when to sell your commercial property on the Mississippi Gulf Coast, the current data and outlook make a strong case for doing so in 2025. By aligning your sale with peak market conditions, you position yourself to achieve the highest possible value. Of course, every property and situation is unique. It’s wise to consult with a local commercial real estate expert who understands the nuances of the Gulf Coast market. They can provide a custom 2025 market timing strategy – whether that means listing immediately to capture buyer demand or making small improvements and targeting a sale later in the year when seasonal dynamics are ideal.
The bottom line: 2025 is shaping up to be a seller’s market for commercial real estate along the Mississippi Coast. With a vibrant economy and investor interest rising, timing your exit in this window could maximize your returns. Keep the key market drivers and forecasts discussed above in mind as you plan your next steps. With the right timing and strategy, you can turn your Gulf Coast investment into a highly rewarding sale in 2025.
Author Bio:
Grey Molyneaux is a commercial real estate agent specializing in seller representation on the Mississippi Gulf Coast. With a strong background in sales and marketing, he helps property owners maximize their real estate investments through strategic marketing. Grey is also a dedicated husband, father, and musician, balancing his professional expertise with his creative passions.
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