The prospects for capital markets in commercial real estate this year look bright, according to Colliers' 2026 CRE outlook. Capital is available, investors are hunting for new prospects and loan maturities are being extended. Even office — once seemingly doomed to disaster — appears to have led all asset classes in terms of volume and price growth in 2025.
As the gap between market-level cap rates for industrial and multifamily properties has narrowed, investors are likely to focus on risk-adjusted returns and inherent underlying local dynamics. As a result, cap rate spreads between markets will widen.
In 2025, CMBS issuance reached its highest level since the great financial crisis of 2007-2009 as investor interest in new deals intensified, yielding strong liquidity for cash-flowing assets, including quality office and large assemblages. The market is dominated by single-asset, single borrower (SASB) deals and $1 billion transactions are more common.
“Look for CMBS volume to exceed $100 billion for the third straight year,” Colliers advised.
Another positive change projected for 2026 is a resumption of foreign investment as a share of total U.S. CRE sales after a long pullback.
“Reset pricing will appeal to international buyers, opening opportunities for portfolio acquisitions and trophy office assets,” the report stated.
In addition, lenders are more inclined to extend loans rather than repossess assets, especially if interest rates come down this year, providing relief for borrowers. Loan maturities are expected to top $1 trillion in 2026, much of it due to loan extensions.
An improved outlook for office could also be expected if the volume and price growth it experienced in 2025 continues. Selective deals are already underway and could accelerate in 2026 if the market continues to demonstrate improved fundamentals, compelling pricing and renewed interest from foreign and institutional investors.
At the same time, CRE sales improvement has been modest. It is still below the pre-pandemic average for most asset classes, though signs indicate that the number of properties trading over a given period is rising.
“Sidelined capital is beginning to loosen, and fundraising is improving. Expect total sales volume to grow 15% to 20% in 2026,” Colliers stated.
Lastly, pricing has found a floor and rising values are expected to continue this year, with low to mid-single-digit increases for most asset classes.
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