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Brookfield Sees CRE Recovery Accelerating With $20B Deal Pipeline

Brookfield Sees CRE Recovery Accelerating With $20B Deal Pipeline

Brookfield plans to deploy billions into CRE as market dislocations create new investment opportunities.

Nina Dale
May 12, 2026

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Good morning. As transaction activity rebounds, Brookfield says it expects to execute $20B in CRE deals over the next two months, and believes office fundamentals are “absolutely flying.”

🎙️This Week on No Cap: Equinox’s Jeff Weinhaus breaks down the real estate strategy behind the luxury fitness empire, from the 70/30 Rule that picks new cities to the long game with landlords that's let Equinox scale without losing its soul.

CRE Trivia 🧠

Often called the largest private real estate development in U.S. history, the 28-acre Hudson Yards megaproject on Manhattan’s West Side was spearheaded by which New York-based real estate firm and its founder?

(Answer at the bottom of the newsletter)

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Market Snapshot

S&P 500

GSPC

7,412.84

Pct Chg:
+0.19%

FTSE NAREIT

FNER

845.63

Pct Chg:
+0.064%

10Y Treasury

TNX

4.41%

Pct Chg:
+0.046

SOFR

30-DAY AVERAGE

3.64%

Pct Chg:
-0.00

*Data as of 5/11/2026 market close.

Buying Spree

Brookfield Sees CRE Recovery Accelerating With $20B Deal Pipeline

Credit: Peter J. Thompson/National Post

Brookfield Asset Management says a CRE rebound is accelerating and expects to capitalize on $20B in transactions over the next two months.

Deal flow heats up: Brookfield CEO Connor Teskey said the CRE recovery is moving faster than headlines suggest, with transaction activity and valuations improving across sectors. Most of the firm’s anticipated $20B in deals will focus on hospitality, logistics, and housing rather than office.

Office comeback narrative grows: Despite the office sector remaining CRE’s most scrutinized, Teskey said fundamentals are improving quickly. Years of limited construction — driven by the pandemic, higher rates, and work-from-home trends — have created a supply crunch just as demand begins to recover.

Rents are surging in gateway markets: Teskey said office rents in some prime markets are now 50% to 80% higher than five years ago as tenants compete for top-tier space. Brookfield believes those gains could help revive office deal activity as investor confidence returns.

Doubling down on alternatives: The firm also highlighted opportunities in credit markets following its full integration of Oaktree Capital Management. Executives said market dislocations could create opportunities to deploy billions over the next few years.

By the numbers: Brookfield reported first-quarter net income of $586M, up from $507M/year earlier, while fee-related earnings rose 11%. The firm also raised $3.4B during the quarter, including strong inflows into infrastructure strategies.

➥ THE TAKEAWAY

Backing the rebound: Brookfield is betting the CRE recovery is already underway, particularly in sectors with durable demand. Its bullish stance on office suggests institutional investors may be warming back up to top-tier workplace assets.

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✍️ Editor’s Picks

Underwrite 10x faster: AI underwriting that surfaces your best deals in minutes. No more manual modeling. (sponsored)
Liquidity reboot: Secondary recap deals are becoming a key CRE strategy to unlock liquidity, extend hold periods, and fund future growth.
Regional divide: Apartment REIT performance is splitting by geography in 2026, with Coastal markets gaining momentum from limited supply while Sun Belt metros continue absorbing heavy new deliveries.
Deal smarter: Sharpen how you underwrite, size debt, and run waterfalls. Wharton Online Real Estate Investing Certificate. 8 weeks. Cohort starts June 8. Code CREDAILY: $300 off. (sponsored)
Credit cooldown: Private-credit returns are slowing as Fed rate cuts, rising defaults, and investor redemption concerns pressure an industry that recently thrived on outsized gains.
Series A: Fifth Dimension secured $26M to scale its CRE-focused AI platform as institutional firms race to modernize fragmented investment workflows.
Policy standoff: Build-to-rent firms are signaling confidence despite proposed federal restrictions on corporate homeownership, betting lobbying efforts will soften the housing bill before it becomes law.

🏘️ MULTIFAMILY

Supply reset: Multifamily is showing early signs of rebalancing as new deliveries slow, vacancy stabilizes, and concessions persist while landlords wait for stronger rent growth.
Affordable magnet: Wichita is attracting middle-income residents with affordable duplex housing, lower living costs, and growing healthcare and manufacturing job opportunities.
Permit surge: LA is leading the nation in multifamily permitting as developers ramp up apartment construction amid growing activity across key submarkets.
Pricing split: Apartment landlords are regaining pricing power in supply-constrained markets like Chicago and Philadelphia, while oversupplied Sun Belt metros continue facing rent pressure.

🏭 Industrial

AI spillover: The AI-driven data center boom is fueling industrial real estate demand as manufacturers, logistics firms, and prefab operators expand facilities to support digital infrastructure growth.
Industrial reset: DWS sees industrial real estate poised for renewed strength as lower construction activity, supply chain shifts, and AI-driven demand support long-term sector resilience.
Logistics bet: Provident Industrial expanded its Southeast footprint with the acquisition of a 2.5M SF Memphis industrial portfolio, betting on the city’s long-term strength as a global logistics hub.
Modern migration: Industrial demand is shifting toward newer logistics facilities as tenants prioritize modern space, while slowing construction helps tighten overall market fundamentals.

🏬 RETAIL

Retail reset: Retail investors are flocking to grocery-anchored and necessity-based centers as tight supply, stable cash flow, and improving financing conditions boost confidence in the sector.
Mall makeover: Macerich is buying and upgrading top malls with experiential tenants to attract Gen Z shoppers back to physical retail.
Mall revival: GGP is rebranding and expanding its retail strategy, betting on upgraded malls and digitally native brands to drive growth as demand for physical stores rebounds.
Florida foothold: 11 North Partners acquired a $59.5M Orlando-area retail center as it continues expanding its open-air shopping center portfolio across high-growth Florida markets.

🏢 OFFICE

Pyramid fallout: New lawsuits tied to the Transamerica Pyramid sale are raising questions about Michael Shvo’s reported $79M payout as investors absorbed major losses on the San Francisco landmark.
Trophy refinance: Soloviev Group secured a $1.8B refinancing for 9 West 57th Street as strong leasing activity and premium rents reinforce demand for top-tier Manhattan office space.
Office consolidation: TD Bank signed a 10-year lease at Boston’s International Place, consolidating its regional offices into one location as the property completes a $100M renovation.

🏨 HOSPITALITY

Board battle: Braemar Hotels’ largest shareholder is pushing for board changes, warning potential hotel sales could trigger a $480M payout tied to the REIT’s external adviser.
Booking slowdown: Philadelphia hotel operators are seeing weaker-than-expected World Cup demand as international travel concerns and FIFA room cancellations weigh on summer bookings.

📈 CHART OF THE DAY

AI is projected to increase U.S. demand for industrial, office, and retail real estate by 12% over the next decade, driven largely by logistics and high-quality office space needs.

CRE Trivia (Answer)🧠

Related Companies, founded and chaired by Stephen Ross. The first phase of the $25B-plus development opened in March 2019.

Brookfield Sees CRE Recovery Accelerating With $20B Deal Pipeline

Brookfield plans to deploy billions into CRE as market dislocations create new investment opportunities.

CRE Trivia 🧠