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Transaction activity hit $233.6 billion in the first six months of 2026, a 14.7% increase over the same period a year earlier, according to Avison Young. The jump signals renewed investor confidence in a market that had been dampened by higher financing costs and lingering COVID‑era excess inventory. At the same time, lenders continue to back new deals, exemplified by Waterfall Asset Management and Delaware Life’s $64.7 million financing for a 301,000‑sq‑ft office building in Torrance, California.
Why it matters: The volume rise shows that capital is flowing back into both office and industrial assets, suggesting a shift from the distress‑heavy environment of 2024‑25 toward a more balanced market. Large‑scale financing like the Torrance loan indicates that lenders are willing to support selective, well‑located properties even as overall office absorption remains modest.
What to watch next: Analysts will monitor whether the transaction momentum sustains in the second half of 2026, especially as interest rates stabilize. Key indicators will include further large‑ticket financings, any acceleration in office lease renewals, and the impact of rising construction costs on new supply. A slowdown could re‑introduce distress in sectors such as multifamily, which already shows signs of strain in markets like Houston. [[1]]