Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Real Estate Market Shift: Buyers Underwrite Buildings Carefully #shorts

25 Aug 2026 · 1 min

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1:23

In this market commentary, the speaker forecasts that in the next few years sellers will encounter more buyers than in 2023, but each buyer will scrutinize properties more rigorously. The underlying pressure stems from energy‑driven inflation, which has kept bond markets nervous, a condition expected to persist until a key strait reopens. Transaction activity in the $5‑$25 million price band reached $57.11 billion in the first half of the year, a 9.3 % year‑over‑year increase and the second consecutive year of growth, indicating that buyers are returning. However, the growth is concentrated in industrial (up 12.6 % to a record) and retail (up 17.7 %), while conventional apartment sales are essentially flat. Multifamily remains the largest segment, but its lead over industrial has narrowed dramatically—from a $5 billion advantage five years ago to just $339 million today. Capital is rotating toward asset classes where current income, not projected rent growth, drives valuation. Institutional investors are moving downmarket, with former $100 million‑deal players now underwriting $50 million deals and $25‑$50 million players competing near $10 million. Private buyers are also becoming more sophisticated in their underwriting. The overall tone is analytical and cautiously optimistic, highlighting both renewed buyer interest and heightened diligence.

Chapters

Sell in the next couple of years, you will have more buyers than you would have had in 2023, and every one of them will underwrite your building more carefully. Energy is what pushed inflation up earlier this year, and it is why the bond market stays nervous. Until the strait reopens, this pressure stays. Now, the piece that matters if you are thinking about selling. Properties in the $5 to $25 million range traded $57.11 billion in the first half, Up 9.3% from a year ago. Second straight year of growth. Buyers are back. But look where they went. Industrial rose 12.6% to a record. Retail rose 17.7%. Conventional apartment sales were essentially flat. Multifamily is still the largest piece of that market, but its lead over industrial has collapsed. 5 years ago, apartments led by about $5 billion. Today, the gap is $339 million. Capital is rotating toward property types where current income carries the deal, not projected rent growth. Institutional buyers are moving downmarket. Investors who once required $100 million deals are underwriting around $50 million. Those who targeted $25 to $50 million are competing near $10 million. Private buyers are getting more sophisticated too.