On January 14, commercial real estate services firm CBRE Group released its projections for the U.S. real estate market, anticipating a significant surge in commercial real estate investments, which are expected to reach $562 billion by 2026. This represents a projected increase of 16%, driven by a recovery in leasing activity and income-focused returns for investors. The report highlights a “flight to quality” in the industrial real estate sector, while retail success will hinge on alignment with consumer demand. Additionally, the multifamily segment’s focus will be on tenant retention amid current market conditions.
In light of these insights, we examine the top ten real estate services stocks favored by hedge funds, which may benefit from the anticipated market dynamics.
Methodology for Stock Selection
To compile this list, we focused on U.S.-listed real estate services companies with a market capitalization exceeding $2 billion and share prices above $5. We filtered stocks that exhibit at least 10% upside potential, as indicated by TipRanks consensus data as of February 5. The final selection ranks stocks based on the number of hedge funds holding positions as of the end of the third quarter of 2025.
Research indicates that imitating top hedge fund picks can lead to market outperformance. In fact, our quarterly newsletter strategy, which includes 14 small-cap and large-cap stocks, has yielded a remarkable 427.7% return since May 2014, outperforming benchmarks by 264 percentage points.
Top 10 Real Estate Services Stocks
10. Cushman & Wakefield (NYSE:CWK)
Number of Hedge Fund Holders: 19
Cushman & Wakefield has recently seen its price target adjusted from $16.50 to $19 by Morgan Stanley analyst Ronald Kamdem, who maintains an Overweight rating on the stock. This adjustment suggests a potential upside of nearly 26%. The firm specializes in integrated services, including leasing and capital markets, with a focus on facilities management and consulting services.
9. Colliers International Group (NASDAQ:CIGI)
Number of Hedge Fund Holders: 23
On February 3, Raymond James analyst Frederic Bastien upgraded Colliers International from Strong Buy to Outperform, raising the price target from $195 to $200, indicating over 49% upside. The company’s recent acquisition of Ayesa Engineering is expected to enhance its capabilities and contribute to future growth.
8. FirstService Corporation (NASDAQ:FSV)
Number of Hedge Fund Holders: 25
While BMO Capital reduced its price target for FirstService Corporation from $209 to $202, it retained an Outperform rating, reflecting over 27% upside potential. The company reported $535.4 million in total EBITDA for 2025, exceeding expectations 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 potential upside of 36%. The company is in the process of divesting a substantial industrial portfolio, which could enhance its financial position.
6. KE Holdings (NYSE:BEKE)
Number of Hedge Fund Holders: 37
As of February 5, KE Holdings garnered strong bullish sentiment, with a median price target of $21.02, suggesting almost 14% upside. Despite a downgrade from Buy to Neutral by Goldman Sachs, the company’s valuation remains attractive following recent market movements.
5. Jones Lang LaSalle (NYSE:JLL)
Number of Hedge Fund Holders: 40
“Jones Lang LaSalle remains a strong investment, with a raised price target from $360 to $410,”
stated Alex Kramm from UBS, suggesting more than 22% upside. The firm operates globally, providing a diverse range of real estate services across multiple sectors.
4. Compass Incorporated (NYSE:COMP)
Number of Hedge Fund Holders: 52
On January 26, J.P. Morgan initiated coverage of Compass with an Overweight rating and set a price target of $15, implying a potential 25% upside. The firm’s technology-driven approach positions it as a significant player in the residential real estate market.
3. CoStar Group (NASDAQ:CSGP)
Number of Hedge Fund Holders: 57
“CoStar Group demonstrates significant growth potential, with a new price target of $80,” noted Jake Fuller from BTIG. This price target suggests a remarkable upside of 57%. The company is noted for its analytics and marketplace services within the commercial real estate sector.
2. CBRE Group (NYSE:CBRE)
Number of Hedge Fund Holders: 71
Analyst Brendan Lynch from Barclays maintains an Overweight rating on CBRE Group, raising the price target from $190 to $192. The firm’s wide-reaching services position it as a leader in the commercial real estate market.
1. Zillow Group (NASDAQ:ZG)
Number of Hedge Fund Holders: 74
On January 29, Barclays analyst Trevor Young upgraded Zillow Group from Underweight to Equalweight, raising the target price from $66 to $72, suggesting a 34% upside. Despite facing competition from newly merged entities, Zillow continues to represent a significant player in the technology-enabled real estate market.
As the real estate landscape evolves, these stocks present intriguing opportunities for investors looking to capitalize on the sector’s growth potential. Enhanced market dynamics, driven by the recovery in commercial investments, will likely benefit these firms in the coming years.
