Despite shifting economic tides, the multifamily sector and the Southeastern U.S. emerged as the heavyweights of commercial real estate in 2025, capturing the lion’s share of CRE capital raised and investor returns.

A new analysis of full-year 2025 data by real estate platform Agora, representing the fundraising activities of more than 1,000 real estate investment firms, reveals that multifamily assets secured 48.6% of all capital raised nationwide. Geographically, the Southeast led the charge, securing 42.1% of capital raised and producing 40.5% of total investment returns.

The commercial real estate market remains highly concentrated geographically, with just 10 states accounting for 66.9% of total investment returns, the report noted. Texas led all states with 11.7% of total investment amounts, followed closely by New York at 10.5% and Florida at 10.2%.

While multifamily dominated the year by generating 40.3% of total investor returns and capturing 48.6% of raised capital, other sectors showed shifting momentum. Industrial assets followed in a distant second with 22.4% of returns. Residential projects saw a late-year surge, reaching 39.6% of all capital raised in the fourth quarter. 

Additionally, infrastructure is positioned for significant growth as artificial intelligence demand drives investment, the report found, with the global AI market’s forecasted growth expected to drive $3 trillion in investment over the next five years.

Looking ahead to 2026, market sentiment is highly optimistic. According to a CBRE survey cited in the report, 75% of investors plan to buy more assets in 2026 than they did in 2025.

This bullish outlook is supported by forecasts of 2.5% gross domestic product growth and increased business investment following tax cuts in the One Big Beautiful Bill Act. In addition, lower interest rates and the increase of alternative lenders are expanding funding options, with debt funds now accounting for 37% of closings.