The Real Estate Roundtable’s (RER) Q3 2026 Sentiment Index registered an overall score of 63, unchanged from the previous quarter, as improving property fundamentals and strong debt liquidity were offset by persistent challenges raising equity capital and subdued transaction activity. (Q3 2026 Report)

Topline Findings

The Q3 Sentiment Index topline findings include:

• The Q3 2026 Index registered an overall score of 63, unchanged from the previous quarter. The Current Index rose 2 points to 63, while the Future Index declined 1 point to 63. (Q3 2026 Report)

• Operating conditions are healthier, but the recovery remains uneven. Improving leasing fundamentals, abundant debt capital, and the stabilization of post-pandemic disruptions are supporting the market. However, fundraising remains challenging, transaction volume remains below desired levels, and investors continue to navigate valuation resets and geopolitical uncertainty.

• Sentiment varies sharply by asset class. Data centers are the clear leader, supported by AI-driven demand, capital inflows, supply constraints, and strong fundamentals. Retail has improved, benefiting from limited new supply and durable demand. Industrial and logistics remain attractive, though enthusiasm has cooled from pandemic highs. Multifamily is more mixed, with long-term demand offset by oversupply and affordability pressures in some markets. Office remains highly bifurcated, as trophy assets and markets gain traction while weaker markets lag.

• Asset values show signs of stabilization. 45% of respondents said values are relatively unchanged from one year ago, 43% said they are higher, and 12% said they have declined. Looking ahead, 49% expect values to rise, 50% expect them to remain stable, and only 1% anticipate a decline.

• Equity capital remains selective. 25% of respondents said availability is worse than one year ago, 35% said it has improved, and 40% said it is unchanged. Half expect equity availability to improve over the next year.

• Debt capital remains widely available. 63% said debt availability has improved from one year ago, while 36% said it is unchanged and only 1% said it has worsened. Looking ahead, 29% expect debt availability to improve further.

Roundtable View

• RER President and CEO Jeffrey DeBoer said, “Commercial real estate fundamentals are improving, supported by stronger leasing, healthier debt markets, and greater stability in asset values. However, limited equity capital and high costs continue to constrain transactions and development.”

• DeBoer added, “Data centers continue to outperform other property sectors, as AI reshapes commercial real estate and drives unprecedented demand for reliable, affordable energy. Policymakers must ensure that energy infrastructure, permitting, tax, and regulatory policies keep pace with this growth. A coordinated approach that expands power generation and transmission, modernizes the grid, and preserves a stable investment environment will help support data center development while protecting ratepayers and meeting the needs of communities and the broader economy.”

RER’s Q3 survey was conducted in July by Chicago-based Ferguson Partners. The Q4 survey will be sent out to members in October.

Senate Finance Committee Ranking Member Ron Wyden (D-OR) on Thursday unveiled a white paper that proposes the elimination of several federal incentives for new data center investment and a new excise tax on data center operations. (Senate Finance Committee Press Release| Politico, Aug. 6)

Data Center Tax Proposal

• Sen. Wyden’s proposal would prohibit Opportunity Zone funds from investing in new data centers, subject capital assets used to build and supply data centers to longer cost recovery periods than assets used for other purposes, and effectively deny investors’ ability to participate in new data center investment through REITs. (White Paper, Aug. 6)

• The proposal would also impose a gross receipts excise tax on U.S. data center operators. (White Paper, Aug. 6)

• The white paper cites the current construction boom as evidence that the changes are justified, while stating the proposal “will not end data center development or put at risk the U.S. maintaining its status as the global leader in AI and other innovative technologies.” (PoliticoPro, Aug. 7)

• While Sen. Wyden’s statement describes the tax provisions as removing “existing investment incentives,” in actuality the changes would create discriminatory tax penalties that expressly exclude data centers from general, long-standing rules that apply broadly to other forms of capital investment.

• U.S. data center construction has quadrupled over the past four years, according to the white paper, which also cites roughly $700 billion in projected spending this year. Revenue from the proposed tax changes would be directed toward workers and communities affected by AI-driven economic disruption (White Paper | NOTUS, Aug. 6)

• Sen. Wyden is seeking comments on the framework through Aug. 31 and expects to release legislative discussion draft language this fall. (AI Weekly, Aug. 7)

Why It Matters

• Data center development is increasingly connected to a broader infrastructure ecosystem. A recent Academy Securities report identifies the federal Enhanced Use Lease (EUL) program as an emerging catalyst for digital infrastructure and domestic supply chains, noting that the Army, Air Force, and Department of Energy have increasingly used the program to facilitate data center development on underutilized government land. (July 29)

• The model also leverages private capital for infrastructure development. The private-sector lessees under EUL arrangements bear the costs of financing, designing, building, operating, and securing facilities—illustrating the role private investment can play in meeting growing infrastructure needs.

• With energy demand surging, real estate is an important partner in supporting energy investment, increasing efficiency, and delivering energy savings across the economy.

• Meanwhile, in mid-August, the North American Electric Reliability Corp. (NERC) is expected to issue federal registration requirements and grid reliability standards for owners and operators of data centers. NERC’s imminent proposed standards could result in the first federal-level regulations on data centers. (Roundtable Weekly, July 17 | 24)

Permitting Reform

• Bipartisan Senate permitting negotiations will continue beyond the August recess, with Sens. Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT), and Martin Heinrich (D-NM) now targeting September for a potential agreement. Negotiators report progress, though significant issues remain over transmission, renewable energy projects, and historic preservation reviews. (E&E News, Aug. 5)

The House and Senate are scheduled to return to Washington on Sept. 14, leaving a narrow legislative window to advance permitting reform and other priorities before the midterm elections.

The Roundtable’s policy news digest will resume publication on Friday, September 11, 2026.

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