- CRE investment volume is projected to rise 16% in 2026, per CBRE forecasts.
- Market pricing is stabilizing, with new listings near 2022 levels.
- Retail, office, and industrial sectors show renewed momentum.
- Debt markets remain healthy as inflation trends normalize.
Investor Activity Strengthens
Commercial real estate investors are entering 2026 with increased optimism, as CBRE projects a 16% annual rise in CRE investments, according to Globe St. Lower rates and realigned pricing are helping push investor appetite, evidenced by a growing number of confidentiality agreements and broader bid sheets across assets.
Why The Market Is Shifting
CRE now offers relatively attractive pricing compared with other asset classes. Cap rates are expected to compress by 5 to 15 basis points on most assets, especially high-quality properties. Stabilizing office valuations, particularly in prime locations, are building investor confidence as leasing activity improves. The improved sentiment is also being shaped by a noticeable recovery in investor risk appetite, which has encouraged renewed capital flows into the sector across multiple asset types.
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Sectors to Watch
The office and retail sectors are anticipated to show the strongest volume growth in 2026, building on a low base. Prime office locations are seeing price gains, while select lagging markets like Chicago and Los Angeles are bottoming out. Industrial properties remain in demand, with modern facilities in growing metros expected to outperform. Multifamily faces regional oversupply challenges, but fundamentals are solid in the Midwest and select gateways. Hotels are poised for opportunities, especially in high-end demand segments as new supply eases and RevPAR increases.
Stable Financing Environment
Debt markets are expected to remain robust with all lender types active. Alternative lenders and banks are maintaining interest, particularly as the yield curve steepens. Improving inflation trends and a potential dip in long-term Treasury yields may further narrow bid-ask spreads and add market liquidity.
