Commercial real estate investors are once again opening their wallets. And where are the dollars flowing? To markets that boast strong population growth, infrastructure investment and economies that are diverse enough to withstand shifting market conditions.
That trend is highlighted in the latest Global Real Estate Perspective report from JLL, which found that investment activity in commercial real estate continues to gain momentum both in the United States and globally. The report points to increasing confidence among investors who are looking beyond short-term returns and instead focusing on markets positioned for long-term growth.
The numbers tell the story. According to JLL research, U.S. transaction volume reached $113 billion during the first quarter of 2026, a 25% increase from the same period a year earlier. Globally, transaction activity climbed 18% year-over-year during the quarter.
The gains weren’t spread evenly across the country. Instead, several major cities emerged as clear winners. Among U.S. markets, Atlanta, Chicago, New York, San Francisco and Washington, D.C., accounted for the largest increases in investment volume. San Francisco led the way by a wide margin, posting a 150% increase in investment activity between the first quarters of 2025 and 2026.
In the Midwest, Chicago wasn’t far behind. Investment volume in Chicago jumped 96% during the same period, while Atlanta posted a 91% increase. Washington, D.C., recorded a 23% gain, while New York saw activity rise by 21%.
The strong showing in Chicago could be particularly encouraging for Midwest investors and developers who have spent the last several years navigating uncertainty tied to interest rates, construction costs and changing tenant demand.
JLL officials say investors are becoming more selective in where they place capital, with long-term fundamentals carrying more weight than they have in previous market cycles.
Danny Finkle, executive managing director and investment sales platform leader for JLL Capital Markets Americas, said the investment landscape is changing in a significant way.
“Investors continue to have confidence in the relative value of real estate and are motivated to deploy capital,” Finkle said in the report. “The markets gaining share are those with clear demographic tailwinds, infrastructure investment and diversified economic bases.”
Finkle said investment decisions today increasingly revolve around positioning for future growth rather than simply identifying the highest yields.
“We’re seeing a fundamental shift in how capital evaluates opportunity; it’s no longer just about yield, but about positioning for the next cycle,” he said. “The cities leading investment volume growth today are the ones building the infrastructure and talent ecosystems that will define competitiveness over the next decade.”
The report also highlights changing trends among property sectors. Office properties, long considered one of commercial real estate’s most challenged sectors following the rise of remote work, posted the strongest investment-sales growth among major property types globally.
Office investment activity increased 42% year-over-year worldwide during the first quarter of 2026. For the first time since early 2024, office overtook living properties as the most liquid commercial real estate sector.
The gains were even stronger in the United States. Office investment activity in the U.S. increased by 61% year-over-year during the quarter, according to JLL. The report credits much of that increase to large transaction activity and historically low levels of new office supply entering the market.
Retail and industrial properties also contributed significantly to overall growth in the United States. Internationally, the Asia-Pacific region posted the strongest growth in direct investment, rising 31% year-over-year. JLL identified Japan as the world’s most liquid investment market, followed by Singapore.
