Commercial real estate investors show renewed interest in office sector

Commercial real estate investors are showing renewed interest in the office sector. According to a SitusAMC research report, preference for office transactions rose to 11 percent in the second quarter of 2026, up from 4 percent in early 2025. This shift is attributed to increased clarity on valuations and growing optimism regarding the financial feasibility of office conversions.

While multifamily remains the top-ranked asset class, investor optimism for that sector dropped from 60 percent to 36 percent, likely due to oversupply issues in the Sun Belt. Meanwhile, interest in the industrial sector also saw a significant increase.

In a separate development, the National Association of Realtors (NAR) has launched a quarterly Commercial Real Estate Demand Index. The index tracks economic drivers across 306 U.S. metro areas to anticipate shifts in demand before they manifest in vacancy rates or rents. It utilizes sector job growth for office, industrial, and retail sectors, alongside population and migration data for the multifamily market.