The U.S. capital markets are showing renewed momentum amid economic uncertainty, supported by strong liquidity and record-setting CMBS activity. Investors are preparing to deploy sidelined capital as loan maturities, restructurings, and a stronger fundraising environment to create new opportunities.

Top Highlights

• As a share of overall sales volume, multifamily remains the top performer, capturing more than one-third of dollars traded.

• Rebounding from a cyclical low, office has emerged as a leader in sales volume growth. Private capital has been the dominant player to date, taking advantage of market repricing, while REITs have been relatively quiet, strategically acquiring assets.

• Despite that headwind, industrial is the only asset class where volume over the past year has surpassed the pre-pandemic average from 2016-2019. While the market may seem stalled and liquidity crimped, that view appears largely subjective.

• Retail investors are reaping the benefits of patience. After surviving numerous pressures on brick-and-mortar stores, assets are performing well. Occupancies remain healthy, top centers have waiting lists to backfill vacancies, and supply-side pressure is limited.

• Hospitality volume has been the most volatile among the major asset classes. In months and quarters with large-scale deals, such as resort property sales, activity pops; when those deals do not trade, volume is restrained.

Source: Colliers