Commercial real estate investment activity is regaining momentum in early 2026, with capital broadening across property types and deal structures, according to MSCI data highlighted in a Colliers analysis.
Overall, U.S. investment volume has risen roughly 18% year-over-year, marking a continued recovery from the sharp slowdown in transaction activity during the rate shock cycle. The increase in MSCI's in the first quarter 2026 report reflects both improving sentiment and a widening of capital participation across sectors after a prolonged period of concentration in core assets.
MSCI data also indicates that a broader range of investor types is re-entering the market after being largely sidelined during the peak of interest rate volatility.
The rebound remains uneven. Industrial and multifamily continue to account for a disproportionate share of activity, remaining the deepest and most liquid pools in the market. Both sectors are supported by stable income profiles and sustained institutional demand, with multifamily continuing to anchor overall transaction volume and industrial remaining a preferred allocation for core and core-plus capital.
Office activity is showing incremental improvement, though from a significantly reduced base. Transaction flow is stabilizing in select segments, particularly suburban assets and single-asset trades, as investors gradually re-engage with repricing opportunities. However, liquidity remains highly selective and concentrated in higher-quality or well-located assets rather than reflecting a broad-based recovery.
Retail and hospitality are also seeing modest gains in transaction activity, though capital remains disciplined. Retail investment continues to favor necessity-driven and grocery-anchored formats. Hotel investment is rebounding sharply, with transaction volume rising 64% year-over-year to $9.4 billion, driven primarily by portfolio and entity-level sales, while single-asset deal flow remains flat.
Despite the improvement in volume, pricing remains uneven across the market. Bid-ask spreads continue to narrow only gradually, with underwriting standards still conservative relative to pre-2022 norms, the report said. In many cases, transaction activity is being driven more by capital availability and sector-specific confidence than by full price discovery between buyers and sellers.
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