According to CBRE’s U.S. capital markets data, investment volume in Q2—excluding entity-level transactions—jumped to $96.9 billion, marking a 13% increase over the previous year. Private investors led the charge, accounting for $60 billion of the quarterly investment, while institutional investors followed with $17 billion. In contrast, inbound cross-border investment slipped 2% to $4 billion.
<!–>
Entity-level transactions took a sharp downturn, plummeting 91% to just $887 million, largely due to the absence of blockbuster deals like Blackstone’s $10b acquisition of AIR Communities, which had buoyed numbers in Q2 2024. Meanwhile, single-asset investment outperformed with a 15% increase to $78 billion, and portfolio sales rose 3% to $18 billion over the same period.
Recommended For You
–>
Examining the trailing four-quarter investment volume, CBRE reported a 19% year-over-year gain to $418 billion for Q2 2025—the highest reading in two years.
Across property sectors, multifamily assets saw the largest second-quarter investment at $32.9 billion, although this was down 19.2% from $40.7 billion in Q2 2024 and comprised 34% of the $96.9 billion total. Industrial properties held a 23% market share at $22.3 billion, reflecting a 2.3% increase from the previous year, while office assets claimed an 18.3% share with $17.8 billion—up a notable 50.1% year-over-year. Retail properties garnered $14.4 billion, up 31% from $11 billion in 2024 for a 14.9% market share, and hotel investments fell 23.9% to $5.4 billion for a 5.6% share.
<!–>
On the lending front, CBRE’s Lending Momentum Index climbed 45% to 275 year-over-year in Q2, even as lending activity dropped 6% quarter-over-quarter. Lending conditions faced pressure from tariff volatility and policy uncertainty in the early part of the quarter, but both credit flows and spreads rebounded in June. The index reflects loans originated or brokered by CBRE and may not capture nationwide trends.
–>
Alternative lenders dominated the non-agency lending space, representing 34% of loan closings. Banks secured 24%, life insurance companies held 23%, and CMBS accounted for 19%, more than doubling their share from 9% in Q2 2024. Commercial loan spreads widened by 10 basis points year-over-year, while multifamily spreads narrowed by 22 basis points, based on permanent fixed-rate loans with typical loan-to-value ratios between 55% and 65%.
In terms of geography, Seattle led all metros in year-over-year growth, boasting a 115.6% increase to $12.1 billion in transaction volume. Las Vegas, Portland, Orlando, Baltimore, the San Francisco Bay Area, Dallas-Ft. Worth, Salt Lake City, Charlotte, and Denver all posted significant gains ranging from 31% to 88%.
Despite these headline figures, CBRE executives urged caution. “Despite uncertainty in the macro environment, occupier and investor clients largely proceeded with executing their plans,” said Bob Sulentic, CBRE’s chair and CEO. The capital markets demonstrated resilience and stabilization, but challenges such as shifting credit conditions and policy uncertainty continue to cast a shadow over the sector’s recovery.