The U.S. commercial real estate investment sales market extended its recovery through the third quarter of 2026, with Avison Young reporting approximately $389 billion in closed transactions across office, multifamily, industrial, retail and development assets year-to-date. Third-quarter volume alone reached about $143 billion, marking the strongest third quarter since 2022 and underscoring the return of capital to the sector.
Multifamily remained the dominant recipient of investment dollars, continuing to draw the largest share of capital among the major property types. At the same time, industrial assets led the market in year-over-year sales growth, highlighting sustained demand for logistics and distribution facilities even as overall transaction activity normalizes from prior peaks.
The office sector, which has faced ongoing structural headwinds, also registered a pickup in investment activity. According to Avison Young, investors are targeting higher-quality office properties and are seeking opportunities created by reset valuations. This renewed focus on quality and pricing dislocation is helping to re-establish a basis for trades in select office segments.
Major U.S. markets are playing an outsized role in the rebound. Avison Young’s 15 key growth markets collectively accounted for roughly 56% of total U.S. investment sales volume, reinforcing the concentration of capital flows in large, diversified metros. Within that cohort, performance has varied significantly by market and by asset type.
From the first through the third quarter of 2026 compared with the same period in 2025, investment sales volume increased 76.5% in Chicago, 51.3% in Washington, D.C., and 30.9% in the San Francisco Bay Area. Avison Young noted that each market is being propelled by different demand drivers, even as overall volumes trend higher.
In Chicago, investors are gravitating toward perceived value in office and industrial assets, reflecting both discounted pricing and confidence in long-term fundamentals. Washington, D.C. is experiencing a surge in multifamily investment, signaling sustained interest in rental housing in the nation’s capital. The San Francisco Bay Area is seeing a boost from AI-driven demand, which is supporting investment activity as technology and innovation tenants expand.
James Nelson, head of U.S. investment sales at Avison Young, said the recovery is unfolding unevenly across markets, but with a clear theme that capital is returning. He emphasized that investors are approaching new opportunities with greater selectivity, concentrating on locations and asset types where they see the strongest risk-adjusted returns. This disciplined deployment of capital is shaping the next phase of the investment sales cycle.
