CRE deal volume rises 9% to $113.7B in Q2

What's happening

U.S. commercial real estate investment volume reached $113.7 billion in the second quarter of 2026, up 9% from a year earlier, according to MSCI data. It was the third consecutive quarter of growth, though entity-level take-private deals lifted the headline number.

Industrial led the sectors, but pricing gains were mixed across property types.

• Industrial: $32.5 billion, up 27%; pricing down 0.4%.
• Multifamily: $36.7 billion, flat; pricing down 1.7%.
• Office: $18.5 billion, down 9%; pricing up 2.2%.
• Retail: $18.0 billion, up 13%.
• Hotel: $8.0 billion, up 27%; pricing down 9.3%.

What it means for owners, tenants and investors

Liquidity is returning, especially for industrial, which gives owners considering a sale a deeper buyer pool than in 2024. Flat to slightly lower pricing means gains are coming from volume, not appreciation. With the 10-year near 5% and the Fed raising rates in September, the second half may be harder. Southern California industrial sellers should be realistic on pricing while taking advantage of strong investor interest in the sector.

Transaction volume matters to all owners because it sets the comparable sales that appraisers and lenders rely on. More trades mean clearer pricing, which helps owners refinance and helps buyers and sellers agree on value. Tenants in buildings that change hands should review lease terms and the new owner's plans.

More deals are closing, but prices are not rising with them.

What to watch

Third-quarter volume will show whether higher rates slow the recovery that began in late 2025. Continued entity-level deals could again distort the headline total.

Photo: Radission US / Unsplash.