Many commercial real estate investors intend to increase their investments this year: CBRE

A recent survey conducted by CBRE, a prominent commercial real estate services and investment firm, has revealed that the majority of commercial real estate investors are looking to increase or maintain their allocations to the sector in the coming year. The survey, which included developers, real estate funds, private equity funds, and other investor types from both the U.S. and Canada, showed that about three-quarters of respondents expressed a desire to buy more commercial real estate, while 21% indicated they would maintain their purchase levels from the previous year.

Despite the generally optimistic outlook of investors, there are some potential risks on the horizon that could affect the market. Factors such as an uncertain economic future and a weakening labor market have tempered the enthusiasm of some investors. However, James Millon, co-head of capital markets at CBRE, remains positive about the current state of the marketplace. He acknowledged that while pricing is a crucial consideration, there has been a significant amount of capital raised in recent years for investment in real estate, indicating a strong interest from investors to continue purchasing properties.

Millon emphasized that there is substantial dry powder waiting to be deployed into the market, leading to a scenario where there will likely be more buyers than sellers. He suggested that the current market environment presents opportunities for savvy investors to find valuable assets, despite the need for careful evaluation of pricing and investment decisions.

In terms of market expectations for the year ahead, CBRE anticipates a 16% increase in overall commercial real estate investment volume. While the majority of investors expressed interest in buying more properties, less than half indicated they were looking to sell. Tommy Lee, the other co-head of capital markets at CBRE, noted that the market may see more competitive bidding pools, especially in the early part of the year. Additionally, he highlighted that the composition of bidding pools is becoming more diverse, leading to increased competitiveness among potential buyers.

When it comes to the most attractive markets for U.S. investors, Dallas has claimed the top spot for the fifth consecutive year, followed by Atlanta and San Francisco. Other notable markets include Miami, Charlotte, Raleigh-Durham, Nashville, Tampa, Seattle, and New York City. Multifamily properties, such as apartment buildings, remain the most sought-after property type among investors, followed closely by industrial and logistics properties, retail, and offices.

In summary, CBRE’s survey results paint a positive outlook for the commercial real estate market in 2026. With a majority of investors eager to expand their portfolios and notable market trends pointing towards increased investment activity, the year ahead looks promising for commercial real estate investors seeking opportunities for growth and expansion.