Welcome back to What's Hot What's Not C.R.E. — your daily pulse on commercial real estate in America. It's Friday, February 13th, 2026. Today — where institutional and smart money capital is flowing right now. 
🔥 What's Hot — Where Capital Is Flowing: Data centers continue dominating capital allocation. 95% of global investors surveyed by CBRE plan to increase data center spending. Construction spending on data centers is now surpassing traditional office buildings. The AI supercycle is real — nearly 100 gigawatts of new capacity projected through 2030, potentially creating $1.2 trillion in real estate asset value. Power — not location or cost — is now the primary site selection driver. Industrial remains a core allocation — nearshoring and onshoring continue driving demand for manufacturing and logistics facilities. Build-to-rent is accelerating — BTR on track to hit 15% of single-family starts. Sun Belt states — Texas, Florida, Arizona, North Carolina — seeing the strongest activity. Multifamily debt over equity — capital flowing more toward debt than equity due to attractive risk-adjusted returns. Private credit has emerged as a major liquidity source. Lenders highly active on deals above $50 million. 
❄️ What's Not — Where Capital Is Avoiding: Office continues to be avoided — smart money only touching office through repositioning plays. Class A multifamily in oversupplied Sun Belt markets — institutional capital pulling back from Dallas, Austin, Phoenix, Tampa. Too much inventory, heavy concessions, slow absorption. Capital rotating to Class B workforce housing instead. Broad risk-on exposure is out — allocations selective, concentrated in trusted managers and targeted themes. 💡
 Why It Matters: Total CRE investment activity expected to increase 16% in 2026 — reaching $562 billion, nearly matching pre-pandemic levels. Colliers forecasting 15-20% increase in sales activity. This is a sector-specific cycle — data centers, industrial, BTR, and Class B multifamily are winning. Office and oversupplied Class A multifamily are losing. The theme is clear: recurring income, stable occupancy, and operational quality over speculative plays. 
🎯 Investor Takeaway: Follow the smart money — data centers for AI-driven growth, industrial for nearshoring tailwinds, BTR for demographic demand, Class B multifamily for stability. Avoid office unless repositioning. Avoid Class A in oversupplied Sun Belt. This is an income-driven cycle — asset selection and management are everything. 
That wraps up the week! Have a great weekend. 
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