All-property capital values were flat in Q3 and our CE Capital Value Lead Indicator suggests more of the same in Q4 and into early 2026. Lagging appraisal adjustments and still-high financing costs will limit the pace of recovery in the coming years.
At the sector level, office NOIs are now falling rapidly, but conversely occupier demand is showing signs of improvement. Elsewhere, the additional costs of tariffs are set to weigh on retail and industrial demand for a while longer. But apartments vacancy is set to peak and drop back, supporting strengthening rental growth into 2026. Finally, self-storage looks set for only a very gradual rise in rents, whereas we think senior housing is well-placed for strong rates of rental growth.
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