Skip Ribbon Commands
Skip to main content

Skip Navigation LinksCommercial-real-estate-investment-trends


​National commercial real estate transaction volumes softened by 9.0 percent in 2017 as investors pulled back from big-ticket single-asset transactions in gateway markets. 

However, the appetite for real estate debt and equity remains high, and investors—both domestic and international—are seeking to double down on their exposure to real estate. And investors have ever more pressure to deploy capital to achieve returns. This, in an environment of low yields, and amid rational and disciplined underwriting, is driving investor creativity:​

  • Investors are moving into new geographies, with a greater focus on secondary markets
  • Investors are now formulating more thematic strategies for capital allocations and investments—focusing on micro-markets, alternative property sectors and non-conventional deal structures
  • Off-shore investors’ diversification into secondary markets is expected to increase
  • ​Based on current in-progress transactions, we expect to see a higher level of portfolios, joint ventures, recaps and entity-or GP-level investments as a means of increasing real estate exposure

Key themes


Selectivity and rational underwriting are dampening overall transactions volume; investors’ approach to primary vs. secondary markets is changing

Global capital

Asian capital remains dominant in the U.S. and is now impacting all sectors


Value add funds deployed nearly $27.0 billion in 2017, in excess of 50.0 percent more than opportunistic funds


Lending remains stable amid comeback from CMBS and increased presence from debt funds​

Multifamily investment

Despite elevated deliveries, multifamily transaction activity ended 2017 on a strong note.

Explore the cap rate map Get the Multifamily Outlook

Office investment

Rational and disciplined underwriting remains the norm for office product.

Explore the cap rate map Get the Office Outlook

Industrial investment

Industrial transaction activity represented the only sector to experience growth in the U.S. in 2017.

Explore the cap rate map Get the Industrial Outlook

Retail investment

While investors remain cautious, increased retail sales volume is expected for 2018.

Explore the cap rate map Get the Retail Outlook

Lodging investment

The Lodging sector is benefiting from healthy demand in the three major sources of business–corporate transient travel, group business and leisure travel.

Explore the cap rate map Get the Lodging Outlook

Net Lease investment

​​Net lease transaction volumes parallel broader commercial real estate transaction trends and represent more normalized activity.

View market snapshot Get the Net Lease Outlook

Download the report

View the complete H2 2017 U.S. Investment Outlook for more on these latest trends per sector.