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Distressed commercial property sales rise 26.4% while nondistressed trades rise 50.3%

MSCI data cited by The Real Deal on Oct. 21 show $13.2 billion in distressed trades in the first nine months, up from $10.5 billion; overall volume rose nearly 50% to $560 billion.

At a glance

  1. The same MSCI data show nondistressed trades rose 50.3% over the January-to-September period, helping push overall transaction volume nearly 50% higher to $560 billion.
  2. The Real Deal attributes the sales to financing costs: the elevated rate environment is keeping pressure on owners and leaving many to sell properties while facing distress.
  3. On Oct. 2, this publication reported PCCP and life insurers were closing refinancings, including a $68.3 million loan on a half-leased Mesa warehouse, as the 10-year Treasury sat at 5.3%.

Distressed commercial property sales reached $13.2 billion in the first nine months of 2026, up 26.4% from $10.5 billion a year earlier, according to MSCI data reported by Bisnow and cited by The Real Deal.

The same MSCI data show nondistressed trades rose 50.3% over the January-to-September period, helping push overall transaction volume nearly 50% higher to $560 billion. Distressed sales are shrinking as a share of the larger market even as their dollar volume climbs.

The Real Deal attributes the sales to financing costs: the elevated rate environment is keeping pressure on owners and leaving many to sell properties while facing distress.

On Oct. 2, this publication reported PCCP and life insurers were closing refinancings, including a $68.3 million loan on a half-leased Mesa warehouse, as the 10-year Treasury sat at 5.3%.

Reported by the Sectors desk from The Real Deal — National and MSCI data, as reported by Bisnow. Published . Corrections

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