- US CRE investment hit $150.6B in Q3 2025, up 25.1% year-over-year, with multifamily driving 51.1% annual growth.
- Transaction activity rose 12.6% quarter-over-quarter, with over 45,000 properties sold nationwide.
- Office sales increased 14.6% YoY, showing strong momentum amid broader sector volatility.
- Median pricing PSF rose 14.2% YoY, reaching $126/SF—a post-COVID high.
Rebound in Full Swing
Following a sluggish first half of the year, the US CRE market posted a strong third quarter. Altus Group’s Q3 2025 report shows a significant uptick in both deal volume and pricing across most property sectors, signaling renewed investor confidence.
In total, 45,893 properties changed hands, a 12.6% increase from Q2 and a 6.8% rise from the same period last year. The cumulative dollar volume for Q3 reached $150.6B, marking the highest quarterly total since before the Fed’s rate-hiking cycle began.
Multifamily Leads the Pack
Multifamily was the top-performing sector, representing 30% of all transaction activity and 34% of all single-asset sales by dollar volume. Sales volume jumped to $45B, a 51.1% year-over-year increase.
Median pricing for multifamily properties climbed to $144/SF, up 17.3% YoY and 3.5% from Q2, continuing a steady upward trend.
Office Market Shows Signs of Life
Office properties, long seen as troubled assets post-COVID, showed notable recovery signs. Sales volumes reached $19B, up 28.0% YoY, while transaction counts increased 14.6%.
The median office deal size rose by 23.8%, with pricing hitting $135/SF, a 14.8% increase YoY.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Industrial and Retail Keep Climbing
Industrial and retail sectors also saw steady growth. Industrial property volume rose to $29.6B (+26.5% YoY), and retail transactions totaled $23.1B (+10.9% YoY). Storage (+7.6%), automotive retail (+5.0%), and medical office (+4.6%) posted the largest quarter-over-quarter pricing gains.
Hospitality Lags Behind
In contrast to the broader market, hospitality properties continued to face challenges. Both transaction volume and pricing gains lagged: property count declined 11.9% YoY, and total dollar volume dropped 18.5%, suggesting weaker investor appetite for the sector.
CRE Market Outlook
Despite some pockets of weakness, Altus notes that pricing growth has accelerated across nearly all sectors, with median prices for single-asset deals up 14.2% YoY. Markets like Miami (office +32.7%) are seeing standout gains, while others like Los Angeles and Washington, D.C. saw localized declines.
Looking ahead, the CRE market is on track to outpace 2023 and 2024 investment levels, though Altus cautions that Q3 figures are preliminary and may be adjusted for lagging data.
