Investors have begun taking a more bullish approach to commercial real estate, Marcus & Millichap reported. A quartet of macroeconomic factors bodes well for the investment outlook, the company said in a new Research Brief.
One is a reset in pricing. With cap rates up by 80 to 130 basis points year-to-date from 2022 levels, investors have often sought out quality assets at below replacement costs.
Another is multiple tailwinds across property sectors, including multifamily, office, industrial and retail. Multifamily, for example, is bolstered by a slowdown in construction and monthly rents that remain below mortgage payments.
The interest rate outlook is also giving numerous investors a favorable disposition, according to Marcus & Millichap. The potential for regulation to free more debt capital is a related factor.
Finally, investors also see commercial properties as offering more durable returns in comparison to other asset classes.
Marcus & Millichap has scheduled a live webcast on Oct. 29 to discuss the 2026 investment outlook.
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