Guiding Buyers, Sellers and Investors to Real Estate Wins
ANNUAL SALES VOLUME BY PRODUCT TYPE: 2018 - 2025 YTD
THIS MONTH'S FEATURE
Commercial Real Estate Sentiment Continues to Improve Heading Into 2026
Commercial real estate sentiment is showing clear signs of increased optimism heading into 2026. The Real Estate Roundtable’s Q4 2025 Sentiment Index, which surveys top commercial real estate executives and scales from 1-100 (with 100 indicating the most favorable conditions) held steady at 67, reflecting an industry that has largely stabilized and is beginning to look forward. Nearly 70% of executives expect overall market conditions to improve over the next year, buoyed by falling interest rates, a resilient economy, and widening credit availability. Notably, 42% of participants reported that asset values have risen compared to last year, and 72% expect further appreciation in 2026 as the bid-ask spread continues to narrow and transaction volume begins to pick up.
The NAIOP Fall 2025 CRE Sentiment Index, in which scores above 50 represent favorable CRE conditions, reinforces this shift. The Fall 2025 survey scored a 56, matching its most optimistic reading since 2021. Developers cited improving financing conditions, a slowdown in new construction, and the potential for lower cap rates as reasons for renewed confidence. With construction costs stabilizing and material price concerns easing, respondents expect both occupancy and rent growth to strengthen in 2026.
Together, these reports point to a market entering a new phase: transitioning from uncertainty to measured optimism. Capital markets are loosening, developers are re-engaging, and sentiment around property performance is improving for the first time in several years. For investors, the coming year presents a window to capture opportunities in sectors positioned for growth, particularly where constrained supply and favorable financing trends intersect.
To view the full reports, navigate to the links below.
