CBRE Forecasts CRE Investment Volume Growth

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CBRE, Dallas, said it expects the commercial real estate market to see a 16% increase in investment volume in 2026, nearly matching pre-pandemic levels.

“Total returns will be primarily income-driven, accompanied by modest cap rate compression for most property types,” CBRE said in its 2026 U.S. Real Estate Market Outlook.

“Navigating U.S. commercial real estate in 2026 will require a focus on asset resilience and operational excellence,” the report said. “For occupiers, this means investing in workplace experience to secure talent and boost space utilization. For investors, opportunity will be income-driven, rewarding strategic asset selection.”

“While the recovery will be uneven, stabilizing supply and sustained demand will create a favorable environment for those positioned to capitalize on it,” CBRE concluded.

Key takeaways from the report:

The office market’s recovery will likely continue in 2026, with improved leasing activity spreading to non-gateway markets.

In the industrial sector, a continued preference for high-quality assets will be driven by occupiers seeking modern facilities as many reshore manufacturing and outsource distribution.

Retail sector demand will likely be fueled by expanding grocery, discount and service retailers prioritizing physical locations and requiring strategies that align with changing consumer behaviors.

Net multifamily demand should stay positive throughout 2026 despite an overhang of unleased new supply in some markets.

While record leasing activity for data centers will likely continue, supply growth will be constrained by longer power delivery timelines, leading to more greenfield development in emerging markets.

Healthcare sector construction completions are set to sharply decline this year, stabilizing vacancy rates and supporting rent growth in medical outpatient buildings as occupiers prioritize cost savings and efficiency.

Finally, CBRE forecasts a demand revival in the life sciences sector. “The speculative construction boom will end this year at a time when rising industry employment and reviving venture capital markets buoy demand for lab/R&D space,” the report said.