CRE This Week - What's impacting the United States market?
August 31, 2026 - US commercial real estate news, macroeconomic indicators and market analysis.
Week of August 31, 2026
Welcome to the latest edition of CRE This Week, curated by Altus Group’s US research team.
Our team has handpicked pertinent and noteworthy market indicators, articles, original research, and significant industry dates that are critical to the US commercial real estate sector. We understand that your time is valuable, so we're excited to deliver research that helps you stay informed and saves you some time each Monday morning.
For more key economic indicators that matter to commercial real estate, see Top Indicators by Major Asset Type.
Economic print
Macro economic factors impacting CRE
The U.S. Census Bureau and Department of Housing and Urban Development released July New Residential Sales data on August 25. New single-family home sales fell 10.5% to a seasonally adjusted annual rate of 607,000, down 6.3% from a year earlier, though both changes were not statistically significant at the 90% level. The median sales price was $393,800, slightly below both June and year-ago levels, while the average sales price rose 5.4% year over year to $508,800. Inventory rose to 488,000 units, equal to 9.6 months of supply.
Elevated months' supply gives qualified buyers more choice, but affordability constraints and elevated mortgage rates are still limiting transaction volume. Builder discounts and incentives look more like efforts to clear inventory than signs of stronger demand. For CRE, softer single-family sales should keep some would-be buyers in rentals longer, while weak sales momentum offers little evidence of a near-term pickup in single-family construction.
S&P Cotality Case-Shiller Home Price Index
S&P Dow Jones Indices released the June 2026 Case-Shiller results on August 25. The National Home Price NSA Index rose 1.5% year over year, up from 1.2% in May, while the 10-City and 20-City Composites rose 2.9% and 2.1%, respectively. Regional divergence remained wide, with Chicago, New York, and Cleveland leading annual gains, while Seattle, Las Vegas, and Denver posted declines. With CPI at 3.5% in June, nominal home price growth continued to trail inflation, marking the 13th straight month of real home price declines.
Because Case-Shiller tracks repeat sales of existing homes, it is best read as a signal of resale price momentum, household mobility, and the rent-versus-buy calculation. Firmer gains in Chicago, New York, and Cleveland suggest existing-home values remain supported in relatively supply-constrained markets, reinforcing owner lock-in. Softer readings in Seattle, Las Vegas, and Denver point to weaker resale momentum, but local multifamily pipelines and single-family inventory will determine whether that demand backdrop translates into stronger rents.
Q2 2026 GDP (Second Estimate) and Personal Income & Outlays (July)
The Bureau of Economic Analysis released the second estimate of Q2 2026 GDP alongside the July Personal Income and Outlays report on August 26. Real GDP grew 1.5% annualized in Q2, decelerating from 2.1% in Q1, with consumer spending, exports, and investment driving the gain against a decline in government spending. Real GDI rose 2.2%, notably stronger than the headline GDP figure, and the gross domestic purchases price index rose 5.8% annualized. Separately, July personal income rose 0.4% and disposable income rose 0.5%, but real PCE was flat, the weakest monthly reading this year, as a pullback in goods spending offset a gain in services. The PCE price index rose 3.7% year over year in July, with core PCE up 3.3%.
The releases show a familiar CRE tension: demand is cooling, but inflation remains too firm for much financing relief. Flat real consumer spending is a soft signal for retail and hospitality demand, though performance will vary by segment and market. Core PCE at 3.3% keeps pressure on the Fed, suggesting borrowing costs and cap rate pressure are unlikely to ease meaningfully in the near term.
Advance Economic Indicators Report (July 2026)
The Census Bureau released July's Advance International Trade, Wholesale Inventories, and Retail Inventories report on August 27. The goods trade deficit widened to $118.8 billion from $101.4 billion in June, as exports fell $6.0 billion to $199.4 billion and imports rose $11.4 billion to $318.2 billion; the increase in capital goods imports was the largest driver, up 11.3% month over month. Wholesale inventories rose 1.3% to $959.1 billion, up 5.7% year over year, while retail inventories rose 0.7% to $838.5 billion, up 3.8% year over year. Both readings are not adjusted for price changes.
The jump in capital goods imports points to continued business investment, consistent with the investment strength in Q2 GDP, though the wider trade gap will weigh on Q3 GDP accounting. Inventory growth supports near-term warehouse and distribution demand, but the pace looks incremental rather than a signal of a sharp acceleration in industrial leasing.
News
News to know
Lower short-term rates, World Cup-related revenue strength, and data center-linked business travel are driving renewed hotel investor interest, led by luxury. Deals include the $1.4 billion Grande Lakes Orlando Resort sale and the $320 million Ritz Carlton Central Park South sale. Brands are enforcing renovation requirements more aggressively, pushing owners with steep debt service and deferred capex to sell rather than reinvest; JMI Realty's June purchase of a 254-key Austin Hilton Garden Inn, at roughly $100,000 per room plus $65,000 per room in planned upgrades, reflects the trend. New supply is running at 0.5% of existing stock, well below the 1.6% long-run average.
Senior Housing Buyers Are Paying Up, But Sellers Still Need Convincing (Bisnow, 2026-08-25)
Per-unit senior housing pricing reached nearly $185,000 in the second quarter, up more than 30% since early 2025, per MMCG Investment, while nursing care rents rose 5.6% year over year as available beds declined. Owners, particularly nursing home operators with long-term HUD debt, remain reluctant to sell given limited new supply and strong fundamentals; new-unit growth was under half a percent nationwide, pushing occupancy above 90%, its highest in 20 years of NIC Map data. About 86% of institutional investors plan to increase senior housing allocations this year, per JLL.
Retail Pulls Ahead in an Increasingly Uneven CRE Recovery (GlobeSt, 2026-08-26)
Integra Realty Resources' Mid-Year Viewpoint Report found over 90% of retail markets in recovery or expansion, with the South strongest and vacancy near or below 4% in cities like Miami and Austin. Office remained split evenly between recovery and recession, with CBD Class A vacancy up 86 basis points year over year to 22.08% despite rents rising 1.25% to $33.79 per square foot. Multifamily and industrial were both concentrated in hypersupply and expansion, with the South still absorbing recent multifamily deliveries. Speculative development has slowed across all sectors.
Life sciences real estate remains oversupplied but is stabilizing, per Cushman & Wakefield. Asking rents fell 5.3% year over year to $64.17 per square foot while vacancy climbed to 24.3%. The construction pipeline has shrunk to 2% of inventory from a 2023 peak of 17%. Capital markets are reopening: R&D investment sales rose 4% to $9.3 billion, and global venture capital hit $29.9 billion in the first half, up 30%. San Diego vacancy reached 26.9%, while Los Angeles and Orange County held at 3.6%, with aging office and industrial stock flagged as a conversion opportunity.
Unlikely Winners of the Data Center Boom: Sound Consultants (Bloomberg, 2026-08-26)
Acoustic consulting firms are seeing surging demand as data center developers hire them to survey ambient sound and set noise limits ahead of approvals. There are over 3,000 operational U.S. data centers and roughly 1,500 more in development, with cooling systems and turbines that can exceed 90 A-weighted decibels. Residents near projects in Mississippi and Wisconsin have sued over noise, while a North Carolina dispute centers on conflicting sound studies, a developer-commissioned survey found 70 dBA ambient noise versus a community study's 20 to 40 dBA, raising questions about whether developer-funded studies favor builders.
Contractors Poised to Pass More Construction Inflation to Owners (GlobeSt, 2026-08-27)
Construction costs are set to accelerate in the second half of 2026 as contractors pass more of their rising input costs on to owners. JLL's midyear update found final cost indices running about 5% higher year over year, with materials prices up 6.4% versus 3.5% for final demand prices, a gap JLL expects bid prices to close as contractors protect margins. Tariffs are adding pressure, with copper up 36% year over year, aluminum up 45%, and hot rolled coil steel up 27%, pushing JLL's 8% full year materials inflation estimate within reach. Construction employment is growing just 0.6% annually versus a 2.7% historical average, and JLL estimates 61% of metros are supply constrained, rising to 72% by 2027, with competition for electricians, HVAC technicians, and other specialty trades intensified by data center projects. A shift in the Fed's June projections toward a possible rate increase removed another potential offset for costs. Owners able to engage contractors now, especially outside data center heavy markets, may still find more competitive pricing before higher cost baselines fully hit future bids.
INSIGHTS Spotlight
Catch the latest research and insights from Altus
Report | Q2 2026 US CRE investment and transactions quarterly
US CRE transaction activity gained momentum in Q2, with total dollars transacted up 11.3% quarter-over-quarter and 9.4% year-over-year, and square footage transacted growing 10.3% QoQ. Median price per square foot for single-property transactions climbed 8.6% annually, with industrial leading every sector at 13.2% and storage leading every subtype at 24.0% YoY.
Podcast | CRE values inch higher as bigger deals drive Q2 2026
Omar Eltorai sits down with Mike Amthor, who leads US Performance Evaluation Analytics, and Cole Perry, Associate Director of US Research at Altus Group, to compare the Q2 2026 NCREIF ODCE Index against the Investment and Transactions Quarterly (ITQ) report. The conversation covers a capital movement from multifamily into industrial, cross-validated strength in storage and medical office, and a caveat on the office recovery narrative.
Altus Group's Cole Perry, Associate Director of Research, supplied Reonomy data used in this Bloomberg review of the Mormon Church's US real estate holdings. The Church of Jesus Christ of Latter-day Saints owns at least 2.4 million acres across the US through its investment arm, Property Reserve, with an assessed value exceeding $20 billion. The portfolio spans farmland, apartments, hotels, and offices, and the church is increasingly converting legacy land holdings into master-planned communities, including a 960-acre project near Denver International Airport through Property Reserve, a 4,000-acre development in west Phoenix, and the roughly 27,000-acre Sunbridge community in central Florida developed by Land Reserve. Utah accounts for the largest share of known holdings at 22%, followed by Florida and California at 9% and 7%, respectively.
Important dates
Upcoming data releases and events
Data releases (Times in EDT)
Tuesday, September 1
9:45AM: US Manufacturing PMI (Aug)
10:00AM: ISM Report On Business Manufacturing PMI (Aug)
10:00AM: Construction Spending (Jul)
10:00AM: Job Openings & Labor Turnover Survey (Jul)
Wednesday, September 2
8:15AM: ADP National Employment Report (Aug)
10:00AM: Factory Orders (Jul)
2:00PM: Federal Reserve Beige Book
Thursday, September 3
8:30AM: U.S. Trade Balance (Jul)
8:30AM: Weekly Jobless Claims (Aug 29)
9:45AM: S&P US Services PMI (Aug)
10:00AM: ISM US Services PMI (Aug)
Friday, September 4
8:30AM: Employment Report (Aug)
About our research team
Omar Eltorai
Senior Director of Research
Altus Group
Omar Eltorai is a Research Director at Altus Group. With more than a decade of experience in the industry in investment management and financing roles,
Omar's focus is on macro, capital and market trends affecting the US CRE market. Beyond regularly authoring articles and reports, his commentary and analysis has been featured in various media publications, including: Wall Street Journal, Globe Street, and Yahoo! Finance.
Cole Perry
Associate Director of Research
Altus Group
Cole Perry is a Associate Director of Research with Altus Group's Research team. In this role, Cole delivers key insights into macroeconomics, capital markets, and the broader commercial real estate sector.
Cole boasts a rich background in Commercial Real Estate analytics with previous roles at CompStak and Brixmor Property Group. He holds dual M.S. degrees from Columbia University in Urban Planning and Real Estate Development.
Disclaimer: The opinions expressed in this newsletter are solely those of the authors and are not endorsed by Altus Group Limited, its affiliates and its related entities (collectively “Altus Group”). This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice or services of Altus Group. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy, completeness or reliability of the information contained in this publication, or the suitability of the information for a particular purpose. To the extent permitted by law, Altus Group does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. The distribution of this publication to you does not create, extend or revive a client relationship between Altus Group and you or any other person or entity. This publication, or any part thereof, may not be reproduced or distributed in any form for any purpose without the express written consent of Altus Group.
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