| For the first time in years, parts of the commercial property market are showing real signs of capital growth – and that shift could matter if you’re planning a move in 2026. MSCI data shows commercial property delivered 6.1% total returns over the year to October, fuelled by both income and renewed capital gains. Retail led the upswing at 8.2%, with distribution and industrial assets close behind. What’s behind the shift Ray White Commercial says institutional capital is stepping back in – not just chasing yield, but expecting capital growth. With fewer new developments in the pipeline and occupier demand still firm in sectors like retail and industrial, good assets are becoming harder to secure. That scarcity is helping lift performance for well-located, high-quality properties. How lenders are responding When income stabilises and demand tightens, lenders generally become more open to supporting deals in those segments. That can mean more flexible structures or sharper pricing for borrowers targeting stronger asset classes. If you’re thinking about buying, refinancing or repositioning a property, I can show you how lender appetite differs across sectors – and which markets are attracting the strongest support right now. |
Capital growth is returning to commercial property
