2026 Refinancing Reality Check: Underwriting Gets Tougher
Commercial real estate is entering a no-nonsense phase. In 2026, refinancing will favor borrowers who show durable cash flow, committed equity, and a business plan that stands up to scrutiny. Those who can’t may find capital out of reach. A year of separation: According to Trepp, 2026 should bring steady progress on loan workouts—but also…
Read MoreCommercial Real Estate Heads Into 2026 With Measured Optimism
After a challenging 2025 defined by elevated costs, slower growth, and restrained deal flow, commercial real estate appears to be settling into a more balanced phase. While a dramatic rebound is unlikely, conditions are aligning for a steadier, more constructive year ahead. Fundamentals finding footing Economic momentum cooled last year, but declining interest rates are…
Read MoreCRE Prices Diverge as Development Pipeline Runs Dry
Commercial real estate is showing early signs of stabilization, but the recovery is far from uniform. New property deliveries have dropped to their lowest level in more than a decade, while pricing performance continues to split sharply between top-tier assets and the rest of the market. A bifurcated market: Prime assets in major metros continue…
Read MoreFed Liquidity Moves Send Conflicting Signals on Long-Term Rates
The Federal Reserve has stepped back into the short-term Treasury market to support system liquidity, even as it continues to let mortgage bonds roll off its balance sheet—a combination that keeps pressure on long-term borrowing costs. A tactical shift: After briefly halting balance-sheet runoff, the Fed announced roughly $40 billion per month in purchases of…
Read MoreHeightened Challenges Ahead for 2026 Construction Landscape
JLL is cautioning commercial real estate stakeholders to prepare for another demanding year in the building sector, as a mix of policy shifts and economic crosscurrents continues to complicate planning. A murky 2026 outlook: According to the firm’s new forecast, the construction industry isn’t expected to gain stable momentum next year. Ongoing volatility in trade…
Read MoreU.S. Office Market Resets in 2025 as Deep Discounts Pull Investors Back In
After several bruising years defined by rising vacancies, declining values, and stalled deal flow, the office sector finally showed signs of life in 2025. Sharp price resets—some of the most significant in modern CRE history—opened the door for sidelined capital to re-engage, creating a measurable pickup in investor activity and hints that the market may…
Read MoreBanks Edge Back Into CRE Lending—But Yesterday’s Problems Haven’t Gone Away
Banks are cautiously putting money back to work in commercial real estate, even as the hangover from the low-rate boom continues to weigh on balance sheets. A gradual reopening: After a prolonged slowdown, banks are stepping back into the CRE market. Newmark estimates that lenders originated roughly $227B in new loans over the first three…
Read MoreCommercial Real Estate: Unpopular Today—But Maybe Not for Long
After several years of sluggish performance, commercial real estate may be shaping up as a value opportunity—especially as stock markets look frothy and investors question whether AI enthusiasm has gone too far. How CRE lost momentum: Institutional capital, once the primary driver of the CRE market, has largely remained on the sidelines. Even after five…
Read MoreCap Rates Expected to Trend Lower as 2026 Approaches
Multifamily continues to deliver the strongest performance in the commercial property universe, but the real story is what may unfold in 2026 as financial headwinds ease and cap rates finally begin to compress. Multifamily still leading: The sector posted a 5.48% annual return in Q3, once again outperforming the NCREIF All Property Index—its sixth consecutive…
Read MoreCMBS Delinquencies Climb as Market Stress Spreads Beyond Office
The latest data from Trepp shows October brought another wave of distress across the CMBS landscape, signaling that what began as an office-sector problem is now becoming a broader market challenge. Widening cracks: In October 2025, the overall CMBS delinquency rate climbed 23 basis points to 7.46%, driven by a $1.1 billion rise in delinquent…
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