Robust credit market liquidity powers increasingly competitive transactions market

• Bidding activity accelerates: Buyer interest is growing, with bidding activity achieving its strongest monthly improvement in a year, and July recording the second-highest count of unique bidders in index history.
• Lenders remain aggressive: Competition among credit providers remains well above previous (2021) record highs.
• Debt and equity markets realign: The spread between lender competition and property bidding, which reached a peak divergence in May, is narrowing—signaling healthier transaction environments globally.
   

CHICAGO, Aug. 25, 2026 – A powerful surge in credit market liquidity is reviving global commercial real estate transactions. Investor bidding is rising, even amid macro uncertainty, drawn by the strong relative value proposition of commercial real estate—with conviction increasingly evident in larger transaction sizes.

This momentum is highlighted by JLL’s latest Global Bid Intensity Index (BII), which is now sitting well above levels from one year ago. June marked the sharpest monthly index improvement in a year, while July recorded the second-highest number of unique bidders since index inception, demonstrating expanding buyer pools.

At the same time, credit market appetite remains exceptionally strong and is one of the factors propelling the transactions market. Though average winning loan-to-value (LTV) rates and distinct lender volumes have moderated since April, the Credit Intensity Index (CII) remains materially above previous 2021 record highs, signaling that lenders are still competing harder than buyers. The gap between bid and credit intensity peaked in May and is now compressing, pointing to healthier functioning across the commercial real estate capital markets globally.

“Liquidity is back—and building,” said Richard Bloxam, CEO, Capital Markets, JLL. “The exceptional strength we have seen in credit markets over the past year is now directly propelling transaction activity. As lender confidence spreads into the equity market, buyers are stepping up with clear intent, particularly on larger deals. Looking ahead, the compressing gap between credit intensity and asset bidding marks a pivotal transition toward a more normalized transaction environment through the second half of the year.”

While capital depth is expanding and the weight of active bidders continues to rise notably, macro headwinds persist. A recent run-up in bond yields, particularly in the U.S., continues to weigh on bid-ask spreads. In the months ahead, investors will be watching whether the depth of capital outweighs ongoing borrowing cost pressures, especially in tightly priced sectors such as multi-housing.

“Credit liquidity has built a remarkably strong foundation for commercial real estate over the past two years, with continued robust lender appetite and improving investment sales activity,” said Trey Morsbach, Head of US Debt Advisory, Capital Markets, JLL. “While elevated bond yields keep borrowing costs top of mind, the expanding pool of active lenders is offering optionality. That competitive credit environment, combined with growing bidder depth, is helping the market align on pricing.”

1. Question: What do the JLL Global Credit Intensity Index (CII) and Global Bid Intensity Index (BII) measure?

Answer: The Global Credit Intensity Index measures debt market intensity through the number of unique lenders quoting on loan opportunities and the average winning loan-to-value (LTV) ratio. The Global Bid Intensity Index measures investment sales competitiveness through the number of unique bidders on a transaction and the spread between winning bids and asking prices. Together, these indices create a comprehensive liquidity monitoring system and provide unmatched early signals ahead of the rest of the market.

2. Question: What is driving the recent surge in global commercial real estate asset bidding?

Answer: Investor demand is rising due to commercial real estate's attractive relative value and strong support from debt markets. June logged the largest monthly bidding gain in a year, followed by July recording near-record buyer participation.

3. Question: How are commercial real estate credit markets performing?

Answer: Credit markets remain highly active, with JLL's Credit Intensity Index registering at 112 in July. Although lender competition eased slightly from April, lenders continue to compete harder for transactions than asset buyers.

4. Question: Why does a closing gap between credit and bidding activity matter?

Answer: The shrinking gap between credit intensity and bidding intensity signals that available loans are successfully turning into sales. This alignment points to a healthier and more predictable transaction environment.

5. Question: What key factors could influence real estate asset transactions in the months ahead?

Answer: Elevated bond yields, particularly in the U.S., are pushing borrowing costs higher and pressing bid-ask spreads. Investors are watching whether deep buyer interest will outweigh borrowing cost pressures in tightly priced sectors.

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