Investment activity across major CRE asset classes surged 15% during the third quarter, reaching $111.7 billion, according to a Colliers analysis. Monthly totals have recently been revised upward, highlighting sustained market momentum.
All asset classes posted year-over-year gains except hospitality, and overall sales volume has risen for six consecutive quarters. Office and retail led in sales volume growth, while multifamily and industrial continue to dominate in total dollars transacted.
Office sales volume jumped 38% year-over-year to $19.4 billion in Q3. Central business district activity increased 62%, driven by larger deals and the selective reentry of institutional and cross-border capital. Manhattan led office sales, up 84% with $7.1 billion in volume, followed by Dallas, San Jose, Los Angeles and Houston. Also, overall pricing rose 7.1% over the past 12 months.
Industrial posted $26.5 billion in Q3 volume, up 8% year-over-year, with single-asset transactions driving a 25% increase. Portfolio and entity deals remained restrained, down 29% from 2024. Pricing rose 4% year-over-year, with gains concentrated outside core markets. Dallas led industrial sales with $5.5 billion, followed by Houston, Los Angeles, Phoenix and Atlanta. Markets including Houston, Charlotte, Nashville, Salt Lake City and Fort Lauderdale set year-to-date volume records.
Multifamily led total dollar volume at $43.8 billion, a 13% increase. Pricing declined slightly by 0.8%, while single-asset deals dominated the market. Dallas was the top-traded market, with $6.7 billion in trades, followed by Seattle, Los Angeles, Manhattan, and Atlanta. San Jose recorded record volume through Q3.
Retail sales volume grew 24% to $16.3 billion, with centers driving 40% of activity. Both single-asset and portfolio deals increased and pricing rose 5.5%, the strongest among all property types. Los Angeles led the nation with $3.5 billion in retail sales, followed by Manhattan, Dallas, Phoenix and Seattle. Seattle and Portland posted record activity through Q3.
Hospitality was the only sector to see a decline in Q3, with sales down 15% to $5.8 billion. Single-asset deals fell 3%, while portfolio transactions dropped 54%. Pricing increased 3.9% year-over-year, with gains concentrated outside major metros. Manhattan and Phoenix led hospitality sales with $1.2 billion and $1.1 billion, respectively.
Single-asset deals remain the driving force across the CRE market, while portfolio and entity transactions are still subdued, the report said. Larger deals are beginning to transact selectively, signaling a potential rebound. Colliers notes that recent declines in the 10-year Treasury yield should continue to support investment activity through year-end.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.