In a recent article with GlobeSt titled, “CRE Players Will Get the 2025 Recovery in 2026,” Matthews™ President David Harrington discusses how 2026 is set to bring a recovery that will aid investor sentiment.

 

Harrington covered how he expects improvements in deal volume and access to capital in 2026. “We are finding ourselves in a bit more of a stable place,” says Harrington. “We anticipate the transactional market to move, as well as the operational market, in tandem to improve.”

 

2026 is expected to bring the activity that CRE players wanted to see in 2025. “If you believe in real estate cycles, it would appear that all of the stars are aligned for us to see significant improvement in 2026. This year will be the rebound year that we anticipated for 2025,” says Harrington. “I don’t anticipate that crazy gut shot to the market. It’s a recovery that we can build upon.”

 

Harrington also expressed that he forecasts the capital environment to bring renewed activity to CRE investments. The drop in short-term interest rates, together with several sources of capital, are increasing allocation targets for 2026. “Pick your bucket,” says Harrington. “Whether it’s the agencies or life companies, banks, credit unions or CMBS, they are all positioning for a bigger year and a more active year.”

 

Specifically, agencies will provide more liquidity options for multifamily. Fannie Mae and Freddie Mac are both increasing their multifamily allocations, increasing opportunities for investors.

 

Despite the positive trends, Harrington shared that investors should remain conservative in their investment practices. “Be very thoughtful in your underwriting and be very specific on analyzing the marketplaces you’re in,” says Harrington.

 

Each market across the country is set to perform differently.  “Some markets have experienced growth and some have been the victim of excitement,” says Harrington. “If you have enough perspective and your investment horizon is long enough, pretty much anything could work out.”

 

The new cycle in 2026 will lay the foundation for the long-term outlook. “It’s going to be heaven in 2027,” Harrington says. “We just keep marching forward until then.”

 

Click here to read the full article and gain more insights from David Harrington on the expected outlook for 2026.