Investment activity across U.S. commercial real estate surged 15% in the third quarter, reaching $111.7 billion. Recent monthly figures were also revised upward, reflecting continued market strength and investor confidence.
Sales volume increased year-over-year across nearly all property sectors, marking six straight quarters of overall growth. Office and retail assets led in sales volume gains, while multifamily and industrial properties continued to dominate in total transaction value.
Office Sector Rebounds
Office investment jumped 38% from a year ago to $19.4 billion in Q3. Central business district deals climbed 62%, supported by large-scale transactions and renewed interest from institutional and cross-border buyers. Manhattan led the nation with $7.1 billion in office sales—an 84% increase—followed by Dallas, San Jose, Los Angeles and Houston. Average pricing rose 7.1% over the past year.
Industrial Activity Remains Strong
Industrial transactions totaled $26.5 billion, up 8% year-over-year. Single-asset sales grew 25%, while portfolio and entity deals dropped 29% compared to 2024. Pricing rose 4%, with most gains occurring outside traditional core markets. Dallas led industrial sales with $5.5 billion, trailed by Houston, Los Angeles, Phoenix and Atlanta. Several markets, including Houston, Charlotte, Nashville, Salt Lake City and Fort Lauderdale, reached record year-to-date volumes.
Multifamily Leads in Total Volume
Multifamily assets recorded $43.8 billion in Q3 transactions, a 13% annual increase. Pricing dipped slightly by 0.8%, and single-asset sales continued to dominate activity. Dallas led the nation with $6.7 billion in trades, followed by Seattle, Los Angeles, Manhattan and Atlanta. San Jose posted record volume through the third quarter.
Retail Gains Momentum
Retail investment rose 24% to $16.3 billion, with shopping centers accounting for 40% of total volume. Both individual property and portfolio deals increased, while pricing jumped 5.5%—the largest gain among all property types. Los Angeles led retail sales with $3.5 billion, followed by Manhattan, Dallas, Phoenix and Seattle. Seattle and Portland also achieved record-high activity levels this year.
Hospitality Softens
The hospitality sector was the only category to see a pullback, with sales down 15% to $5.8 billion. Single-property deals declined 3%, and portfolio transactions dropped sharply by 54%. Despite weaker volume, pricing still rose 3.9%, with most appreciation occurring outside major cities. Manhattan and Phoenix led hotel investment with $1.2 billion and $1.1 billion in sales, respectively.
Overall, single-asset transactions continue to fuel market activity, while larger portfolio and entity deals remain subdued. However, larger deals are beginning to reemerge, and declining Treasury yields are expected to further support investment momentum heading into year-end.
Source: GlobeSt.