Multifamily Real Estate Dominates CRE Transactions in Q1 2026
The U.S. multifamily sector is showing no signs of slowing down. According to Altus Group's latest quarterly report on investment and transactions, multifamily properties led all commercial real estate (CRE) sectors in single-property transaction activity during the first quarter of 2026. For investors, lenders, and developers keeping a close eye on capital flows across property types, this data paints a compelling picture of where market confidence is strongest heading into the rest of the year.
Multifamily Claims the Largest Share of Q1 Transaction Volume
The Toronto-based CRE consulting firm found that multifamily projects accounted for 29.2% of single-property transaction values during Q1 2026. Even more telling, multifamily also captured the highest share of individual properties traded during the quarter at 29.6%. These figures place multifamily firmly ahead of all competing asset classes in both volume and deal count.
Retail came in second with a 23.3% share of transaction values, while the office sector claimed third place at 16.7%. The office sector's continued presence in the top three is notable given the headwinds the asset class has faced in recent years, with elevated vacancy rates and shifting hybrid work patterns creating uncertainty for many landlords and investors.
Industrial real estate rounded out a competitive quarter, accounting for 22.4% of transaction values despite representing just 14.8% of properties traded. Altus noted that industrial had the largest gap of any sector between its value share and the actual number of property transactions — a reflection of the higher per-unit prices that industrial assets command in today's market.
Transaction Values Surge Above the $10 Million Threshold
One of the most significant findings from the Altus Group report is the continued momentum among high-value transactions. In Q1 2026, 50.5% of all single-property transaction values exceeded $10 million — a rise of 3.9% year over year and a remarkable 42.3% increase from the low point recorded during the global financial crisis in Q2 2023.
Crucially, Q1 2026 marked the third consecutive quarter in which more than half of all transactions were valued at $10 million or more. The last time this happened with such consistency was back in 2022, a period widely remembered as a peak moment for CRE deal-making before interest rate hikes began to cool activity. The return to this threshold suggests that institutional and large-scale private capital is reengaging with the market in a meaningful way.
Transactions falling in the $1 million to $10 million range accounted for 38.6% of single-property transaction values during the quarter. Deals valued below $1 million represented just 11% of activity, underscoring a market environment that is increasingly being shaped by larger, more sophisticated buyers.
Property Age Trends Reveal Deeper Insights About Buyer Appetite
Beyond the raw transaction data, Altus Group's report sheds light on the types of properties that are actually changing hands — and in particular, their age. The findings reveal notable variation across sectors.
- The median age of multifamily properties involved in transactions during Q1 2026 was 61 years, the highest among all tracked asset classes.
- Commercial sector properties had a median age of 54 years at the time of sale.
- Industrial and retail properties averaged 41 years, reflecting a somewhat younger inventory entering the transaction market.
- Hospitality properties had the youngest median age among traded assets at 36 years.
The relatively advanced age of multifamily properties transacting in the market points to a value-add investment thesis that remains popular among buyers. Older apartment communities often carry significant upside through renovation, repositioning, and rental rate optimization — particularly in supply-constrained submarkets where building new is expensive or logistically difficult. Investors willing to take on the capital expenditure requirements of aging stock are betting on long-term rent growth and strong occupancy fundamentals in major metros.
What This Means for the Multifamily Investment Landscape
The data from Altus Group reinforces a narrative that has been building across the multifamily sector: despite elevated interest rates putting pressure on deal economics over the past two years, capital continues to flow toward apartment assets at a pace that outpaces other property types. Several underlying forces are driving this dynamic.
Housing affordability remains a persistent challenge in most major U.S. markets. As homeownership becomes increasingly out of reach for a large segment of the population, demand for quality rental housing remains structurally elevated. This dynamic supports occupancy rates and gives institutional investors confidence in the durability of multifamily cash flows even during periods of economic uncertainty.
At the same time, the resurgence of transactions exceeding $10 million signals that larger platforms — REITs, private equity firms, and well-capitalized family offices — are actively deploying capital again after a period of relative restraint. The return of these buyers adds liquidity to the market and can help stabilize pricing after years of volatility.
Looking Ahead: CRE Market Momentum Building Into 2026
With three consecutive quarters of majority high-value transactions now on the books, the CRE market appears to be regaining the kind of institutional footing last seen in 2022. Multifamily's consistent leadership in both deal count and transaction value suggests that the sector will remain a primary destination for real estate capital as investors seek yield, stability, and exposure to demographic-driven demand.
For brokers, lenders, developers, and equity partners operating in the multifamily space, Q1 2026 offers a clear signal: the market is moving, buyers are active, and deal flow is accelerating. Whether that momentum holds through the rest of the year will depend on broader macroeconomic conditions — but for now, multifamily remains the undisputed leader of the commercial real estate pack.