2026 Outlook

Heading into 2026, optimism is growing that

market fundamentals have strengthened. Much of the uncertainty tied to elevated interest rates, tariffs, construction and labor costs, elections, and lingering pandemic effects has been absorbed by investors. Still, economic uncertainty is prompting investors to proceed cautiously. On a positive note, wages have outpaced inflation for the past two years, providing some support for spending and overall economic stability.

Activity picked up considerably in the second half of 2025, though this has yet to translate into higher transaction volume. While buyers and sellers are hesitant to push deals forward without a clear catalyst, sentiment remains optimistic for 2026: interest rates may decline; lending conditions should improve; and small economic improvements would support outsized gains. Buyers increasingly recognize that pricing for multifamily, industrial, and retail assets is unlikely to fall further – particularly with interest rates remaining above historic lows.

Transaction volumes are expected to increase in 2026, but long-term investors who are less susceptible to economic swings may hold properties longer while investors who held out for lower interest rates may delay action while near-term market fundamentals strengthen. Markets that are not oversupplied should continue to see strong growth because consumers are still spending and investors are abundant and aggressively looking for deals. Markets that rely on industrial and multifamily development should see activity return as interest rates drop.

Market Outlook provided by Jane Thorn Leeson Director of Research Coldwell Banker Commercial Worldwide.