Colliers Capital Markets recently launched its fifth annual Global Investor Outlook Report, synthesizing insights from industry leaders and data-driven research to highlight key investment trends, risks, and opportunities in commercial real estate.

Here are 10 key takeaways, both globally and for the U.S. region:

• Stronger sales volumes are on the horizon. Investors can look forward to falling interest rates and improved market conditions. A tailwind of declining rates and stabilizing asset class fundamentals will be supportive of a market rebound over the next several quarters.
• International capital will seek value in the U.S. Given the pricing adjustment in the U.S., the basis for acquisition is attractive relative to other parts of the globe.
• Asset class allocation will remain relatively consistent. Multifamily and industrial are expected to lead the way for total volume, while office valuations will capture investor attention. Alternative assets will remain popular, specifically data centers, student housing, senior housing, and life sciences.
• The pricing gap continues to narrow. This closer alignment in valuations should fuel higher transaction volumes across global markets.
• Geopolitics and inflation will shape sentiment. Clearer political landscapes should boost confidence, but potential inflation and policy shifts could slow market momentum. Uncertainty remains.
• Office bifurcates between the best and the rest. Prime locations are attracting capital, while secondary markets face challenges, creating opportunities for value-add investments through renovation and redevelopment.
• Developers face hurdles. High construction and financing costs are discouraging some investors from taking on development risk, leading to low new supply in the years ahead.
• Data centers are popular, but expertise is important. Due to high development costs, intense electricity needs, and access to power, this is a specialized asset class.
• Family offices and generational wealth are expected to have a greater presence. This trend persists despite monetary easing assisting debt-backed investors.
• A shift back from credit to equity is expected. Amid deployment challenges with credit-led structures, capital is likely to flow back toward equity and structures like joint ventures, recaps, and M&A.