$144bn targets Commercial Real Estate re-entry as private wealth extends four-year dominance
Knight Frank, the leading independent global property consultancy, today launches its landmark 20th edition of The Wealth Report, identifying a clear turning point for global commercial real estate (CRE) as $144 billion of institutional capital prepares to re-enter the market in 2026.
Image credit: Knight Frank Wealth Report 2026
The shift comes with private capital still firmly in the lead. Investors including high net worth individuals and family offices have now been the largest buyers of global CRE for four consecutive years, deploying US$464 billion in 2025 compared to US$347 billion from institutional investors.
Knight Frank’s data shows capital is moving on fundamentals, rather than headlines. Despite current geopolitical risk and policy uncertainty, only 15% of its survey respondents, representing US$1.4 trillion of assets under management, cite domestic politics as a key investment driver. Just 5% point to regulation and tax.
Private capital’s advantage is becoming more pronounced. Speed of execution, flexible capital structures and a higher tolerance for risk are allowing it to transact earlier in the cycle and hold through volatility, widening the gap with more constrained and less nimble institutional buyers.
Office recovery driven by occupier demand, not sentiment
The office market is resetting on occupational reality. Knight Frank’s (Y)OUR SPACE survey, covering nearly 300 occupiers and more than 650 million sq ft globally, shows hybrid working has stabilised while office-first models are gaining traction, particularly among financial and professional services firms.
Leasing activity reflects this in most major markets. Global cities are recording new post-pandemic highs as occupiers expand footprints, compete for prime space in supply-constrained locations and reposition portfolios. Rental growth is returning in core markets and investor demand is following. The structural decline narrative has again diverged from the data.
Retail rebound highlights mispriced sectors
Retail is re-rating as supply constraints drive performance. In Australia, the sector delivered total returns of 9.2% in 2025, its strongest result since 2017, supported by years of limited development and rising tenant turnover.
Download the 20th edition of Knight Frank’s Wealth Report here:
Headlines from Knight Frank’s 20th edition of The Wealth Report include:
