Retail tenants of all types are looking toward the Empire State and the Garden State for expansion. Entertainment venues, grocery stores, quick-service restaurants, clothing shops, gyms, nail salons and even dentist offices all look toward these Northeast powerhouse markets for new locations. More
High home prices and elevated mortgage rates have created a barrier to homeownership, encouraging families to rent, according to Marcus & Millichap. This trend benefits the multifamily sector, while dampening demand for home-related retail products — but overall retail occupancy remains strong. More
Equity investing has been tough in 2025 with many investors sticking to the sidelines waiting for rates and pricing to normalize. With the Fed lowering rates and debt capital expected to pick up next year, will equity investing pick up as well? We asked the equity providers themselves what they predict for investing in 2026, as well as their strategies going forward. Here is what they had to say. More
The appetite for retail is strong and is expected to be one of the most sought-after property types in 2026. Count on an increase in transaction volume due to continued low construction, falling interest rates and a moderating economy. Keep an eye out for bank, life company and CMBS lender appetite to improve from the lows seen in 2024 and 2025. More
After a year defined by volatility, the 2026 commercial real estate outlook signals renewed confidence and opportunities. Pricing and cap rates As of October, capitalization rates on closed transactions rose 80 basis points from 2022 levels, suggesting higher potential returns for investors, according to Marcus & Millichap. This reset in pricing is attracting investors who More
Hoteliers will see more available bridge capital in the new year. Bridge lending will be highly competitive next year because of new entrants looking to put out capital and the lack of acquisition activity. With more lenders actively competing, spreads have compressed by roughly 75 to 100 basis points compared with 18 months ago, in addition to the recent declines in SOFR. More
Watch for life companies to increase allocations in 2026 and become more aggressive on proceeds and spreads. There are a number of life companies that were under-allocated going into Q4 so there will be a lot of capital that will need to be placed. Originations will increase next year since there will be more opportunities for LCs to lend. When rates are below 6%, borrowers are more willing to transact. More
Many retail tenants, including clothing brands, wellness centers, furniture stores, grocers and restaurants of all service levels, look toward the western states for new sites. Whether part of a larger mixed-use development, mall, open-air shopping center or entertainment center, these retailers bet on California, Washington and Arizona for new locations. More
Count on CMBS originations to increase at least 10% to 20% in 2026. More competition from new and old players re-entering the market will force CMBS lenders to push leverage to be able to compete. Rates should trend lower as the Fed continues rate cuts. Borrowers have been focused on five-year deals but count on a push toward more 10-year terms going forward. More
Expect lending for self storage to pick up as the capital markets improve. This has been a favored asset class the last few years, which should continue in 2026. Lenders like the low default rates and consistent operating performance in the space. Banks are back competing for new transactions, and the permanent market continues to be strong with CMBS lenders closing as many loans as they can get their hands on. More
Earlier this year we sat down one-on-one with Gary Bechtel, CEO of Red Oak Capital Holdings, one of the top leaders in the commercial real estate industry. He told us what was in store for 2025 and discussed his thoughts on the 2025 MBA CREF Conference, predictions for rates, underwriting changes, bridge lending trends, plus advice to borrowers. More
Keep an eye out for plenty of competition in the multifamily lending space and lots of dry powder to kick off the New Year. The agencies will continue to win the lion’s share of deals, while the other lender types strive to compete. Watch for banks to be more aggressive going forward. Banks paused their activity as they cleaned up their balance sheets to comply with regulations. Now that those initiatives are behind them, they are back in the market and ready to lend under less restrictive conditions. More
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