Confidence is returning to the commercial property market, MSCI data confirms – but not all asset types are recovering at the same pace.
Investors chasing total returns are gravitating toward assets with strong fundamentals, tight supply and reliable occupier demand.
Retail posted 8.2% total returns in the year to October, and distribution facilities and industrial followed closely behind. Offices lagged, delivering positive income but still negative capital growth overall.
The message is clear: quality and positioning matter more than ever.
Where opportunities may emerge in 2026
Ray White Commercial says development pipelines remain constrained, meaning fewer competing assets will hit the market. That scarcity is encouraging both institutional investors and private buyers to move earlier in the cycle, especially in sectors showing stabilisation or early growth.
Implications for buyers and refinancers
As confidence returns, some lenders are reopening appetite for select asset classes – particularly those demonstrating income stability. That may improve pricing or structure options for borrowers with well-located, high-quality properties.
If you’re considering whether to acquire, refinance or reposition your commercial property in 2026, reach out and I’ll help you compare lenders and assess which sectors they’re backing right now.
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