Commercial real estate deal volume decreased by 20% in December compared to the previous year, while the full-year numbers for 2025 showed a 17% increase over 2024. The recovery in office space and multifamily sectors led the market, with total office deal volume up by 21% and multifamily deal volume up by 24%. Retail also saw a healthy gain of 19%, indicating a shift towards more stable investment-grade assets.

The largest sale of 2025 was a 296-property medical office portfolio, highlighting the trend towards alternative sectors like healthcare-related properties, data centers, and student housing. Data centers were particularly active, with major players like Amazon and Google involved in significant deals. Corporate owner-occupiers, especially tech giants like Apple and Amazon, made substantial purchases to secure long-term operational footprints and capitalize on pricing resets in the market.

Private equity firms are emerging as significant players in the commercial real estate market, acquiring large portfolios from major public REITs. Market participants are cautiously optimistic for 2026, anticipating some tailwinds from a more dovish Federal Reserve and potential tax cuts. However, the expectation is for a moderate acceleration of current momentum rather than a return to ultra-cheap capital.

Read more at CNBC: December CRE deal volume sinks further, office is a bright spot