The commercial real estate market in the United States is showing its first signs of recovery this year. According to recent indicators, transaction activity is increasing and investor confidence is returning. As a result, U.S. real estate activity is gaining momentum once again.
A key measure of activity, the Bid Intensity Index, recorded an improvement after months of decline. This index tracks bidding patterns to provide a real-time view of market liquidity and competitiveness. Furthermore, it reflects the underlying capital flows that shape investment sales.
The index contains three sub-measures: bid-ask spread, bids per deal, and bid variability. Together, these factors highlight how aggressively investors compete for assets. In July, all three metrics displayed stronger performance, signaling renewed stability in the market.
Importantly, property fundamentals remain resilient, which supports investor appetite. Valuations across most asset types have held steady despite earlier uncertainty. Therefore, institutional investors are now deploying capital with greater confidence. U.S. real estate transactions are benefiting from this surge in participation.
One of the most promising areas is the “living” sector, which includes multifamily apartments, senior living, and student housing. Bidding activity here is rising steadily as investors view these properties as stable income generators. Additionally, office properties are beginning to attract more interest. More bidders and lenders are entering the market, suggesting improved sentiment.
Some experts argue that the office sector may have found its bottom following its steep downturn. Rising return-to-office trends and bargain-hunting opportunities are boosting demand. Meanwhile, retail properties show mixed signals. Although performance is better than last year, tariffs continue to pressure the sector.
The industrial sector remains the weakest performer, largely due to supply chain disruptions and uncertainty linked to trade policy. Nevertheless, analysts believe that gradual improvements are possible as global conditions stabilize. Investors appear increasingly willing to accept risk as part of the “new normal.”
Overall, liquidity levels remain high, and debt markets are exceptionally strong. Consequently, analysts expect continued growth in capital flows throughout the second half of the year. U.S. real estate is becoming more attractive again as investors shift toward a risk-on approach.
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