Five Things to Consider for Real Estate Investors in 2026

1️. The K-shaped economy isn’t going away.

While not surprising, this is now a structural feature of the U.S. economy, causing divergent outcomes depending on the cohort. Affordability pressures continue to support Class B/C multifamily with a value-add strategy and call into question the near-term growth prospects for newly delivered, high-density, 99 Walk Score product needing $3–$4 PSF to hold pro forma.

2️. Don’t forget the consumer.

2025 was a year of many economy-shaping events, from trade policy and tariffs to AI-driven labor disruption. With the consumer representing roughly two-thirds of the U.S. economic pie, these shifts matter across every property type—and create differentiated investment opportunities.

3️. AI is a CRE opportunity engine.

Rapid technological change brings obsolescence, capital concentration, and volatility—but also inefficiencies. Despite the inherent risks and impacts of AI on CRE, subtle rifts and dislocations could present compelling opportunities for investors.

4️. OpEx will define value-add returns.

It’s the boring stuff—taxes, insurance, and the regulatory environment—which remains unpredictable and can erase upside overnight. I enjoy discussing how infusing creative capex into an asset can drive magnified income growth as much as the next person; however, the winners in 2026 will pair surgical operating strategies with realistic forecasting of uncontrollable expenses.

5️. Increased transaction velocity.

2024 and 2025 saw a meaningful level of transaction volume, reaching $370B and $385B, according to MSCI Real Assets. Higher expected lender engagement and owner liquidity needs point to increased transaction volume in 2026—supporting capital recycling, broader acceptance that benchmark valuations have bottomed, and—dare I say—a return to core strategies?