On January 14, CBRE Group, a leading commercial real estate services firm, released a comprehensive report projecting the U.S. commercial real estate market will reach approximately $562 billion by 2026, reflecting a robust 16% increase. This growth is anticipated to stem from a resurgence in leasing activity and a focus on income-driven returns for investors. The report highlights a notable “flight to quality” among investors, particularly in the industrial sector, while specific retail areas aligned with consumer demand are expected to thrive. In the multifamily segment, tenant retention is identified as a critical priority as market conditions evolve.
As the landscape shifts, CBRE emphasizes the importance of strategic capital allocation for investors. Within this framework, the company notes that real estate services firms are vital in facilitating key processes across the market. Given the promising outlook for 2026, these firms are positioned to capitalize on changing market dynamics.
Top Real Estate Services Stocks to Watch
In light of these developments, a closer examination of the top ten real estate services stocks favored by hedge funds reveals some compelling investment opportunities. The selection process focused on U.S.-listed companies with market capitalizations exceeding $2 billion and share prices above $5. Stocks were further filtered based on a projected upside potential of at least 10% according to TipRanks consensus data as of February 5, 2026. Additionally, the final list was determined by the number of hedge funds holding positions in these stocks as of the close of the third quarter of 2025.
Here are the ten real estate services stocks attracting attention from hedge funds:
10. Cushman & Wakefield (NYSE:CWK)
Number of Hedge Fund Holders: 19
Morgan Stanley analyst Ronald Kamdem increased the price target for Cushman & Wakefield from $16.50 to $19, indicating a potential upside of nearly 26%. The firm provides a range of services including leasing and valuation, and is focusing on improving its performance in various segments despite a neutral outlook on industrial properties.
9. Colliers International Group (NASDAQ:CIGI)
Number of Hedge Fund Holders: 23
Raymond James analyst Frederic Bastien upgraded Colliers International from Strong Buy to Outperform, raising the price target from $195 to $200, suggesting over 49% upside potential. The recent acquisition of Ayesa Engineering enhances Colliers’ capabilities in engineering and project management.
8. FirstService Corporation (NASDAQ:FSV)
Number of Hedge Fund Holders: 25
Despite a price target reduction from $209 to $202 by BMO Capital, FirstService Corporation maintains an Outperform rating. The firm reported $535.4 million in total EBITDA for 2025, highlighting strong performance in its Residential segment.
7. Newmark Group (NASDAQ:NMRK)
Number of Hedge Fund Holders: 29
Analyst Alex Bond from Keefe Bruyette raised the price target for Newmark Group from $21 to $22, indicating a 36% upside. The firm recently announced the divestiture of a significant industrial portfolio for $203 million.
6. KE Holdings (NYSE:BEKE)
Number of Hedge Fund Holders: 37
Consensus sentiment for KE Holdings remains bullish, with a median price target of $21.02 suggesting a 14% upside. Goldman Sachs recently adjusted its price target while downgrading the stock to Neutral to seek further clarity on the property market.
5. Jones Lang LaSalle (NYSE:JLL)
Number of Hedge Fund Holders: 40
UBS analyst Alex Kramm reaffirmed a Buy rating and increased the price target for Jones Lang LaSalle from $360 to $410, indicating over 22% upside potential. The firm operates in over 80 countries across numerous property types.
4. Compass Incorporated (NYSE:COMP)
Number of Hedge Fund Holders: 52
J.P. Morgan initiated coverage of Compass with an Overweight rating and a price target of $15, reflecting a potential upside of 25%. Analysts highlight the company’s strategic growth plans and technology enhancements as key drivers.
3. CoStar Group (NASDAQ:CSGP)
Number of Hedge Fund Holders: 57
BTIG analyst Jake Fuller upgraded CoStar Group to Buy, projecting a price target of $80, which offers nearly 57% upside potential. The company’s growth in its sales team is seen as a major catalyst for future performance.
2. CBRE Group (NYSE:CBRE)
Number of Hedge Fund Holders: 71
Barclays analyst Brendan Lynch maintained an Overweight rating on CBRE Group, raising the price target from $190 to $192. The firm anticipates an improved outlook for REITs focused on certain sectors, despite a conservative view on others.
1. Zillow Group (NASDAQ:ZG)
Number of Hedge Fund Holders: 74
Barclays upgraded Zillow Group from Underweight to Equalweight, raising the price target from $66 to $72. Analysts see promising revenue growth ahead, despite concerns stemming from market competition due to recent mergers in the sector.
These stocks are gaining traction as hedge funds increasingly invest in the real estate sector, aligning with the positive outlook presented by CBRE for 2026. As the market evolves, these firms are poised to adapt and thrive, offering potential opportunities for investors looking to capitalize on the real estate recovery.
