U.S. cap rates showed signs of renewed stability in the second half of 2025 as volatility eased and investor sentiment strengthened. With clearer pricing signals and more predictable underwriting conditions, many respondents now believe the market has reached a turning point.

Financing is gradually becoming more accessible, supported by increased lender participation and improved price discovery. Meanwhile, asset selection remains critical as the recovery within each sector remains uneven. Current trends point to a more active investment landscape in 2026.

Key Takeaways

• Cap Rates Have Stabilized: Across major property types, cap rates were largely unchanged, signaling that most pricing resets have already occurred and markets are nearing equilibrium.
• Widespread Belief That Yields Have Peaked: Most respondents believe yields have reached their cyclical high, though opinions differ on how quickly cap rates may begin to compress.
• Transaction Activity Is Rebounding: Improved buyer/seller alignment on pricing and more debt capital availability are supporting an uptick in deal flow.
• Retail and Multifamily Pricing: These assets are broadly viewed as most appropriately priced given the risks and income growth potential in both sectors.
• Office Sentiment Improves: While the sector remains challenged, more investors are constructive on office.