CoStar Forecasts Lower CRE Yields Across Property Types in 2026

Reuters11-20
CoStar Forecasts Lower CRE Yields Across Property Types in 2026

CoStar Group Inc. has released its latest forecast indicating that yields are expected to decrease across U.S. commercial real estate property types in 2026. The report highlights ongoing cap rate compression in the multifamily and industrial sectors, particularly for high-quality assets where vacancies have peaked and rent growth is accelerating. Office and retail cap rates have remained stable, but upward pressure on yields is easing, with the outlook suggesting potential declines ahead. The forecast is more optimistic than previous quarters, citing a 43% year-over-year increase in sales volume during the third quarter of 2025 and improved liquidity in the market. Additional factors such as the tightening of corporate bond spreads also support expectations for lower cap rates moving forward.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20251120971962) on November 20, 2025, and is solely responsible for the information contained therein.
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