Real Estate Market Update: 2025 Recap and 2026 Outlook
Get the Data-Driven Strategy for 2026
Uncover the latest trends, challenges, and opportunities in the commercial real estate industry.
The commercial real estate market navigated a year shaped by mild monetary accommodation, sticky inflation, and persistent refinancing pressures. While selective liquidity returned, disciplined underwriting and a widening spread between high-quality and distressed assets defined the year.
This report, created in partnership with Trepp, cuts through the complexity to give you clarity on the structural shifts impacting CRE.
Inside you’ll find insights including:
- Market Bifurcation: The definitive split in performance driven by asset quality (e.g., trophy office vs. Class B/C; older vs. newer multifamily stock).
- The Debt Crisis and Refinancing Risk: Analysis of climbing CMBS delinquencies (Office at 10.89%) and the implications of a structurally higher cost of capital for all property types.
- Sector-Specific Drivers: How the AI boom is fueling industrial/data center demand and the profound effect of rising insurance expenses (growing 2-3x faster than CPI) on NOI and valuations across the board.
- Regional Repricing: Detailed sales volume and cap rate shifts across key regions (NYC, Texas, California, etc.), highlighting where capital is re-engaging and where repricing pressures persist.
The Bottom Line for 2026
CRE enters 2026 with cautious optimism. Modest easing may support deal flow, but success will hinge on asset quality, sponsorship strength, and adaptability to evolving structural changes. Access the in-depth analysis to position your portfolio for the coming year.