Investment Volume Rises
Source: CBRE Research, CBRE Capital Markets, MSCI Real Assets, Q3 2026.
Investment Volume Spike Driven by Entity-Level Deals
Source: CBRE Research, MSCI Real Assets, Q3 2026.
Commercial real estate investment volume increased by 98% year-over-year in Q3 to $257.8 billion. Excluding two entity-level deals totaling $104 billion, volume rose by 18%. Multifamily led all sectors with $112.3 billion, followed by industrial ($40.4 billion) and data centers ($34.5 billion). REITs and public companies accounted for the largest share of buyer volume at $89.3 billion, followed by private investors at $79.7 billion. Year-to-date volume increased by 59% to $528.3 billion, or by 24% excluding entity-level deals. New York, Los Angeles and Washington, D.C. attracted the most investment.
Year-to-Date Inbound Cross-Border Investment Rises by 30%
Source: CBRE Research, MSCI Real Assets, Q3 2026.
2026 cross-border investment through Q3 increased by 30% year-over-year to $22.1 billion, nearly matching the 2025 full-year total of $23.8 billion.
Lending Momentum Holds Steady Year-Over-Year
Source: CBRE Research, Q3 2026.
The CBRE Lending Momentum Index ended Q3 at 0.7, unchanged from a year ago but down from 1.0 at the end of Q2.
Alternative Lenders & Banks Lead Loan Closings
Source: CBRE Research, CBRE Capital Markets, Q3 2026.
Alternative lenders accounted for 48% of non-agency loan closings in Q3, up from 37% a year ago. Banks accounted for 26%, down from 31%. Life Companies accounted for 20%, while commercial mortgage-backed securities (CMBS) lenders’ share fell to 6% from 17% a year ago.
Loan Spreads Tighten From a Year Ago
Source: CBRE Research, CBRE Capital Markets, Q3 2026.
Commercial loan-to-value (LTV) ratios averaged 64.3% in Q3, down from 66.9% a year ago, while multifamily LTVs rose to 66.3% from 64.9%. Commercial mortgage spreads narrowed by 23 basis points (bps) year-over-year to 197 bps, while multifamily spreads tightened by 7 bps to 167 bps. Lenders kept competing on price, even as multifamily leverage edged higher.
Underwriting Stays Disciplined As Rates Edge Up
Source: CBRE Research, CBRE Capital Markets, Q3 2026.
Underwriting measures showed mixed movement year-over-year but stayed within a healthy range. The debt service coverage ratio eased to 1.32 from 1.34, while the debt yield remained at 9.5%. Mortgage interest rates edged up to 6.0% from 5.8%, while capitalization rates dipped to 6.0% from 6.1%. The share of loans with partial or full interest-only terms rose to 82.4% from 80.3%.
Contacts
Amos Lim
Associate Director, CBRE Hotels & Investor Research
James Millon
President and Co-Head of Capital Markets, U.S. & Canada
Thomas Lee
Group President and Co-Head, US & Canada, Capital Markets, Advisory Services
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