Commercial real estate sales rise nearly 30% in first half of 2026

Commercial real estate transaction activity saw significant growth in the first half of 2026. According to Green Street, sales of properties valued at $25 million or more reached $164 billion, a nearly 30% increase from the $126 billion recorded during the same period in 2025. Transactions for smaller properties, valued between $5 million and $25 million, also rose by 9.3% to $57.1 billion.

Key drivers for this recovery include increased financing availability and the construction of AI data centers, which have become a major source of investment. Additionally, distressed properties, including office buildings facing reduced demand and those with upcoming loan maturities, are contributing to sales volume. While the Federal Reserve has maintained benchmark interest rates, major lenders like Goldman Sachs have increased commercial real estate lending.

In Los Angeles County, investment sales rose 28.5% in July compared to the previous year, driven largely by the multifamily sector. Multifamily properties accounted for 58% of all investment in the region during that month, with $1.22 billion in sales. While retail and multifamily sectors showed gains, the office sector experienced declines in both sales volume and square footage.