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
Atlanta remains an attractive market, especially because of population growth, and retail follows rooftops. Retailers are especially attracted to major retail destinations and/or mixed-use developments in the ATL. Luxury brands, grocery stores, fast-casual chains and spas all bring new locations to the Atlanta MSA. Burger chain Shake Shack signed a long-term lease for a new More
In the second part of our two-part series about the office market, we dive into trends by region. Among the top 40 U.S. office markets, several cities with persistently high vacancy rates saw improvement in the second quarter of 2025, including San Jose, Calif., (down 110 bps) and San Francisco (down 100 bps). More
Equity investors will deploy capital at increasing volumes throughout 2026, as expected interest rate cuts take hold, the market stabilizes and less uncertainty prevails. Watch for many equity investors to get off the sidelines next year. JV and pref equity are becoming more prevalent as the market bottoms out and people are looking to invest when prices are suppressed. More
Favorable demographic trends, such as population and job growth, along with the ease of doing business, are enticing retailers to markets in the South. Cities of all sizes in Georgia, Louisiana, North Carolina and Alabama are seeing a plethora of new tenants. Fast-casual restaurants, grocery stores, gyms, spas and clothing retailers are all expanding down south. More
Office financing will be robust and more available going forward. Banks, life companies, CMBS lenders and debt funds will all be active. Expect more entrants into the sector, which should drive down pricing and increase leverage and risk tolerance. Liquidity will flow for assets that are either being acquired or those that have been acquired and have already been repositioned. More
The U.S. office real estate market demonstrated resilience in the second quarter of 2025, as stakeholders adapted to evolving workplace trends and shifting tenant needs. Despite ongoing challenges, several key indicators point to a gradual recovery. More
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