- SitusAMC found buy recommendations fell to 15% in Q2, while sell recommendations rose to 14%.
- Nearly three-quarters of survey respondents favored holding CRE as transaction volume dropped to a one-year low.
- Commercial and multifamily borrowing rose 12% quarter over quarter and 16% year over year, but underwriting remained selective.
According to Globe St, the CRE transaction market is getting easier to price, but not yet easier to transact. SitusAMC’s latest ValTrends report found buyer and seller views moved close to balance in Q2 2026. At the same time, deal volume fell to its lowest level in a year as investors continued to favor holding assets.
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CRE Transaction Market Gets Easier to Price
SitusAMC’s RERC survey found that 15% of investors recommended buying CRE in Q2, down from 26% in Q1. That was the lowest buy share in more than two years. Sell recommendations rose to 14% from 4%, reaching their highest level in nearly three years. Nearly three-quarters of respondents recommended holding. The shift suggests investors are moving toward more common assumptions about value, even if many still prefer to wait.
Financing Still Limits Deals
Cap rates remain above long-term averages across major property types. SitusAMC reported retail cap rates 30 basis points above their average, with industrial and apartments 20 basis points above. Office remained 80 basis points above its long-term average. The 10-year Treasury yield also rose 20 basis points during Q2. That compressed the spread between RERC real estate yields and Treasurys to 3.7%, about 130 basis points below the long-term average.
Lending Improves Selectively
Financing activity is improving, but lenders remain selective. Mortgage Bankers Association data cited by SitusAMC showed commercial and multifamily borrowing rose 12% from Q1 and 16% from a year earlier. Industrial originations increased 38%, while office rose 23%. CMBS lending climbed 55% quarter over quarter and 68% year over year. Bank originations increased 61% from a year earlier.
Why It Matters
Narrower buyer-seller gaps can remove one obstacle to CRE transactions, but financing still determines which deals clear. SitusAMC said debt underwriting standards remain historically tight. Lenders continue to focus on interest rates, debt-service coverage, cash-flow stability, and refinancing exposure. Only medical office and self-storage received outright buy recommendations among 16 property types. Most sectors remained a hold.
What’s Next
The next test is whether capital becomes flexible enough to support a broader mix of assets and sponsors. SitusAMC found that CRE returned to the top-rated investment alternative in its survey. Investors cited valuations, income generation, and inflation protection. However, the strong preference to hold suggests transaction growth will depend on deals where pricing, cash flow, and financing align clearly.
