US Commercial Real Estate Transaction Volume Jumps 11.3% in Second Quarter

The commercial real estate recovery of 2025 was defined by small, all-cash buyers scooping up heavily discounted office buildings. The second quarter of 2026 looks entirely different: institutional capital has returned to the table, driving an 11.3% quarter-over-quarter jump in transaction volume by targeting massive industrial and mixed-use portfolios rather than distressed bargains.[1][3]

The shift marks a definitive thaw in a market that spent much of the past two years paralyzed by elevated borrowing costs. According to second-quarter data released by Altus Group, trailing four-quarter transaction volume increased 16.3% year-over-year, while the sheer number of properties changing hands rose 6.7% from the first quarter.[1][3]

For a local logistics company or a mid-sized retailer trying to lease or buy warehouse space, this macroeconomic thaw translates directly into stiffer competition. Industrial properties were the standout sector of the quarter, with total invested dollars surging 26% compared to the same period last year.[1][3]

That demand pushed the median price for industrial space up 13.2% year-over-year to $113 per square foot. Across all commercial property types larger than 5,000 square feet, the median transaction price reached $131 per square foot, representing an 8.6% annual increase.[1]

The profile of the average buyer is also scaling up. Rather than piecemeal acquisitions, capital is concentrating in major deals, with 57.4% of all transacted dollars originating from sales exceeding $10 million.[1][3]

LightBox, which tracked 4,174 commercial transactions in the second quarter—a 12% increase from the first quarter—noted that investors are no longer waiting for the Federal Reserve to return rates to pandemic-era lows. Instead, buyers are underwriting deals based on current financing conditions, focusing heavily on local supply, population trends, and asset-level cash flow.[2]

"Investors appear increasingly willing to underwrite today's financing conditions rather than base decisions on expectations for significant near-term rate relief," the LightBox midyear report noted, highlighting a behavioral shift that has unblocked the deal pipeline.[2]

While industrial assets commanded the highest pricing growth, retail properties actually led the sheer volume of activity in the LightBox dataset, accounting for 23% of all second-quarter transactions. Multifamily followed at 20%, and office space represented 17%.[2]

However, the multifamily sector is experiencing a distinct cooling in total capital flow. Despite a 10.9% rise in the median deal size for apartment buildings, the total dollars transacted in the multifamily space fell 11.9% year-over-year.[1][3]

For renters, this slowdown in apartment building sales often means current landlords are choosing to hold and operate their properties rather than sell them into a market where buyers are demanding higher yields. This holding pattern can stabilize local rental markets by reducing the management turnover that typically precedes aggressive value-add renovations.[1][2]

As the market heads into the autumn of 2026, the divergence between property types is expected to widen. Buyers have accepted the new cost of capital, but they are deploying it with intense selectivity, ensuring that premium industrial and retail spaces will continue to command a premium while older inventory waits for a buyer.[1][2]