CBRE’s Henry Chin Expects Increased Capital Deployed in U.S. Real Estate

The latest CBRE outlook shows a pronounced shift in investor sentiment toward U.S. commercial real estate. A December 2025 investor intention survey reveals that capital commitments are set to rise roughly 16% this year, echoing a broader belief that fundamentals—lower interest rates and improving occupancy—are finally stabilizing. At the same time, Henry Chin emphasizes that REITs are trading at historically low price‑to‑earnings multiples relative to equities, making them a compelling entry point for portfolio diversification.

Supply‑demand imbalances are shaping the sector’s performance across asset classes. Office and retail spaces face limited new construction in key metros such as New York, San Francisco, and the Bay Area, creating a tailwind for prime‑grade properties and even spilling over into Class B assets. Multifamily markets remain tight in high‑growth cities, while industrial logistics benefit from a modest 5% leasing volume increase, driven by 3PL expansion and reshoring trends. Conversely, life‑science real estate confronts oversupply, pushing tenant bargaining power toward the downside and prompting discussions of adaptive reuse.

For investors, the takeaway is clear: prioritize income‑driven returns and target assets with strong rental growth potential. REITs, especially those anchored in prime office, retail, and industrial locations, appear undervalued and poised for outperformance against broader equity markets. Strategic positioning in these segments, coupled with a keen eye on macro‑policy shifts and occupier demand, should enable investors to capture both near‑term yield and longer‑term capital appreciation as the market completes its recovery cycle.