Higher interest rates and market uncertainty are forcing commercial real estate deals to be repriced, delayed or converted into refinancing agreements, CBRE executives said during the company’s third-quarter 2026 earnings call, according to CoStar.
CBRE Chair and CEO Bob Sulentic said volatility in interest rates is weighing on investment sales, mortgage lending and development, with the slowdown potentially extending into 2027.
Property Sales Rise Despite Market Uncertainty
CBRE’s global property sales revenue increased 28% year over year in the third quarter, including a 37% jump in the United States, driven by industrial and retail deals. Industrial leasing revenue rose 16%.
Overall, revenue grew 13% to $11.5 billion, while net income attributable to the company climbed 22% to $443 million. However, capital markets activity slowed in September as some transactions stalled or fell through.
Data Center Growth Offsets Slower Real Estate Spending
Corporate spending on traditional real estate is weakening, partly as major technology companies redirect investment toward data centers and critical infrastructure.
CBRE’s data center infrastructure revenue surged 80% in the third quarter. CBRE expects critical infrastructure services to generate nearly $4.5 billion in revenue in 2027, while its broader infrastructure services business is projected to approach $7 billion.
