Prime Highlights:
- Multifamily housing saw the strongest bidding activity in October, driving increased competition in the CRE market.
- Industrial and logistics sectors are also seeing a rebound as trade uncertainties ease.
Key Facts:
- JLL reports the U.S. is short by 3.5 million housing units, keeping demand high for rental properties.
- Office and retail properties are recovering, with more bids and continued investor interest due to strong consumer spending.
Background:
Investor activity in the U.S. commercial real estate market rose in October, with multifamily housing seeing the most competition, according to JLL’s Global Bid Intensity Index. The index, which tracks bidding activity to gauge liquidity and market competitiveness, recorded the second-highest monthly increase over the past year.
Multifamily properties saw the strongest bidding, fueled by a nationwide housing shortage and near-record-high home prices, which are keeping renters in place longer. JLL says the U.S. is short about 3.5 million housing units, which could reduce vacancy rates as new homes are added.
Bidding is rising for industrial and logistics properties. Retail sees less competition, but investors stay interested. Office properties are also recovering. Analysts say investor confidence is improving, helped by more bidders and stronger participation from lenders.
“Capital deployment picked up in the third quarter, and institutional investors are showing renewed confidence, even with some uncertainties,” said Richard Bloxam, CEO of Capital Markets at JLL. He said that easier access to funds and strong debt markets could help the market grow in 2026.
Although interest rate cuts are uncertain, investors are hopeful rates will drop next year, keeping confidence high. Overall, the commercial real estate market is doing well, with strong activity in multifamily housing and industrial properties.
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