United States Capital Markets Report

3Q 2021
Newmark Research presents the third quarter 2021 United States Capital Markets Report.

The recovery from the pandemic is fully underway as investment volume in 3Q21 hit a record high, reaching $193.0 billion with activity increasing by over 100% year-over-year in all five major property types.
Multifamily and industrial continue to receive the largest share of investment volume, attracting a combined $118.3 billion, representing more than 55% of total sales volume year-to-date, as investors chase higher total returns.
According to NCREIF, annualized total returns for commercial real estate reached 12.1% in 3Q21, while industrial and multifamily returns hit 32.4% and 13.4%, respectively.
Global investment volume hit $1.2 trillion year-to-date and investor allocation to the US CRE market reached its highest point in over a decade, as both APAC and EMEA regions have been slower to recover from COVID-19.
The amount of dry powder accumulated by North America-focused closed-end real estate funds has reached a record $236.9 billion in 3Q21.