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Commercial Real Estate Bidding Hits Its Strongest Growth in a Year

Commercial Real Estate Bidding Hits Its Strongest Growth in a Year

The CRE liquidity drought is easing, but retail and industrial are getting most of the attention.

Nina Dale
August 27, 2026

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Good morning. CRE’s dry powder is starting to move. Bidding activity just posted its strongest monthly improvement in a year, while lender competition is running above previous record highs.

🎙️ This Week on No Cap: What does it take to bring a downtown back? Bedrock CEO Jared Fleisher takes us inside Detroit’s transformation. (Thanks to our sponsor, Warespace)

CRE Trivia 🧠

How many pre-cut mail-order "kit homes" did Sears, Roebuck and Co. sell to American buyers between 1908 and 1940?

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Market Snapshot

S&P 500

GSPC

7,675.70

Pct Chg:
-0.021%

FTSE NAREIT

FNER

861.88

Pct Chg:
-0.57%

10Y Treasury

TNX

4.647%

Pct Chg:
+0.008%

CME Term SOFR

1-Month

3.68%

Pct Chg:
-0.00

*Data as of 08/26/2026 market close.

Bid Intensity

Commercial Real Estate Bidding Hits Its Strongest Growth in a Year

CRE’s liquidity drought is easing, with more buyers—and lenders—competing for deals despite elevated borrowing costs.

Capital comes off the sidelines: JLL’s latest indexes show property bidding posted its strongest monthly improvement in a year in June, while July saw the second-highest number of unique bidders in five years. Lending competition also hit record levels, signaling more capital is fueling dealmaking.

Credit opens the door: Financing is flowing more freely from CMBS lenders, insurers, government agencies and debt funds. JLL says credit availability tends to lead investment activity, with lenders growing more comfortable as widespread CRE distress and defaults have not materialized.

Retail gets crowded: Retail has become a competitive target as its investment outlook improves. With owners enjoying attractive returns and little incentive to sell, renewed demand and limited supply are tightening the bidding environment.

Industrial keeps humming: Industrial remains an investor favorite, fueled by e-commerce, reshoring and reindustrialization. CBRE reported manufacturing leasing rose 27% YoY as companies move production closer to the U.S. to strengthen supply chains and reduce tariff exposure.

Multifamily misses the party: Apartments remain the weakest sector for bidding and credit as the market absorbs a historic construction pipeline. While national vacancies are improving, CoStar found stabilized vacancies rose 34 bps in Q2, signaling continued pressure on existing properties.

➥ THE TAKEAWAY

What’s next: Improving credit conditions have already brought more buyers back, and lower long-term borrowing costs could push competition even higher. JLL sees plenty of runway ahead, but expects a steady climb rather than an explosive rebound.

✍️ Editor’s Picks

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C-PACE surge: Nuveen Green Capital’s latest C-PACE fund raised more than $1B, pushing total commitments above $3B as institutional investors embrace green financing to fill gaps left by traditional CRE lenders.
American icon: Dolly Parton built a CRE legacy across Tennessee, anchored by her 50% stake in Dollywood and a Nashville hotel set to open soon as both a hospitality destination and career museum.
Stop juggling bank accounts: Robora gives CRE finance teams one dashboard to monitor cash across properties, entities, and banking relationships. (sponsored)
Delaware boom: Southern Delaware is becoming a retirement hotspot as affluent Boomers seek Florida alternatives, driving rapid housing and business growth while straining roads, healthcare and local services.
Land empire: The Mormon Church is leveraging billions in US land holdings to fuel large-scale developments across fast-growing markets, reshaping local communities.

🏘️ MULTIFAMILY

NOI squeeze: Multifamily expense growth cooled in 2025, but weaker revenue growth pushed median NOI growth down to 1.8% from 3.4%, leaving owners with tighter operating margins.
Fee crackdown: Seattle will require multifamily landlords to disclose rent, utilities and all mandatory fees upfront starting July 2027, increasing compliance pressure around apartment pricing.
Senior housing: Strong demand and limited supply are driving record investment and higher prices, but owners remain reluctant to sell as fundamentals strengthen and long-term growth prospects improve.
Antitrust reset: An FTC settlement ends Zillow’s exclusive Redfin apartment listings deal, requiring Redfin to rebuild its rental platform and restore competition in the multifamily marketplace.

🏭 Industrial

Power premium: Data center construction costs have surged 21% since late 2024, reaching up to $23.3M per MW as power constraints, equipment shortages and labor demands strain the $2.3T North American pipeline.
Big-box rebound: Chicago’s modern big-box leasing surged 51% to 9.1M SF in the first half of 2026, fueled by large logistics users and demand for newer distribution space.
SoCal debut: Hanover Company has broken ground on its first Southern California industrial project, a 200,000 SF Simi Valley facility backed by Crow Holdings Capital.

🏬 RETAIL

Southern push: Buc-ee’s is expanding across the South and Midwest, targeting highway markets where chain restaurants, fast-food spending and car-dependent growth support its oversized travel centers.
Franchise sprint: Dog Haus is targeting 300 locations and a $1B valuation after bringing in former Jersey Mike’s executives and franchisees to accelerate expansion across 15 U.S. regions.
Basics return: Normcore is reviving demand for apparel staples like denim and basics, giving physical retailers renewed relevance as shoppers prioritize quality, versatility and value.
Olympic scouting: Los Angeles retail is attracting Olympic-related tenants ahead of the 2028 Games, boosting demand for storefronts and raising expectations for stronger rents.

🏢 OFFICE

Texas headquarters: Six Flags will move its headquarters from Charlotte to Arlington by 2027, bringing leadership closer to its Texas parks and strengthening North Texas’ corporate appeal.
Office resilience: Irvine Company’s office portfolio is 91% leased, outperforming the national market as demand from technology, finance and manufacturing tenants drives 11M SF of leasing activity.
Tech-backed financing: Google’s fully leased Mountain View office secured $147.5M in refinancing, highlighting continued lender confidence in high-quality, tech-occupied properties.

🏨 HOSPITALITY

Hotel revival: U.S. hotel sales jumped 28% in the first half of 2026 as investors targeted upgrade-ready properties amid owner distress, high construction costs, lower rates and World Cup-driven demand.
Consumer squeeze: Retail and hotel properties face growing pressure as weaker purchasing power, rising travel costs and uneven consumer demand threaten discretionary spending.
Event economics: Hotel demand varies sharply by event type, with emotionally driven sports fans creating the strongest pricing power while conference and concert travelers show more predictable or shorter stays.

📈 CHART OF THE DAY

Office real estate is showing signs of a cautious recovery, with lenders modestly increasing leverage and originations as office-to-apartment conversions surge to a record 90,300 units in 2026.

Approximately 70,000–75,000. Sears shipped everything from lumber to nails by rail; prices ranged from $600 to $4,000, and hundreds of surviving Sears kit homes still stand in neighborhoods across the country.

Commercial Real Estate Bidding Hits Its Strongest Growth in a Year

The CRE liquidity drought is easing, but retail and industrial are getting most of the attention.

CRE Trivia 🧠