Investors pivot to direct deals and global diversification, fuelling momentum in offices and alternatives
Data centres have surged to the forefront of global real estate investment, accounting for 31 percent of all capital raised from Q1–Q3 2025—a dramatic leap that has displaced industrial and office assets and signals a profound shift in investor priorities, according to Colliers’ 2026 Global Investor Outlook.
This momentum is not isolated.
Colliers reports that commercial real estate markets worldwide demonstrated remarkable resilience in 2025, with institutional investors returning to the fold and confidence building across sectors.
Large office deals are making a comeback, industrial assets remain in high demand, and transaction volumes are expected to rise steadily through 2026 as investors pursue diversification and tactical opportunities across regions and asset classes.
According to Colliers, investors are increasingly favouring direct investments and separate accounts over traditional fund structures, seeking greater control and flexibility.
Private equity and secondary funds are targeting both property-owning entities and operating businesses, reflecting a desire for hands-on strategies and scalable platforms.
This shift is evident in fundraising trends: North America’s share of global fundraising fell to 40 percent in 2025 from 50 percent in 2024, while Europe and Asia Pacific (APAC) saw significant gains—APAC-focused capital raising alone jumped over 130 percent year-on-year.
Sector preferences are evolving rapidly.
Offices, once overshadowed by industrial and logistics assets, are regaining investor attention, particularly in markets like Tokyo, Sydney, and Seoul, where values have stabilized and rental growth is positive.
Multifamily and retail assets continue to attract capital, especially in supply-constrained markets, while alternatives such as student housing and self-storage are gaining traction due to demographic trends and supply-demand imbalances.
Colliers highlights that high construction and operating costs remain a challenge, pushing investors toward adaptive reuse and redevelopment strategies, especially in supply-constrained markets.
Investors are also responding to improved market fundamentals, with liquidity returning, debt and capital costs easing, and pricing expectations normalizing.
Regionally, Colliers notes that APAC is attracting renewed interest, with investors targeting core sectors and emerging alternatives, including healthcare and senior living.
Europe, meanwhile, remains a magnet for global capital, with office and industrial sectors leading the rebound. In the United States, pent-up capital and attractive valuations are fuelling activity in multifamily, industrial, and data centres.
Canada’s safe-haven status and supply constraints in multifamily and retail are driving investor confidence, with institutional capital returning to the market.
As Colliers concludes, the year ahead will reward investors who combine speed with strategy, emphasizing value creation, operational influence, and long-term resilience across sectors and geographies.
