This recovery in commercial real estate is unique. Across the US, Europe, and Asia, it has been defined by persistent weakness in both investment and prices. On this special episode of The Weekly Briefing, Chief Real Estate Economist Kiran Raichura and Senior Real Estate Economist Amy Wood join David Wilder to discuss whether this weakness will persist through 2026 and where investors can still find outperformance. Kiran and Amy address:
- Why higher-for-longer interest rates remain the primary determinant of returns for most clients.
- What is required to bridge the gap between seller and buyer price expectations.
- Which traditional sectors offer the best returns, and which alternatives will provide significant outperformance.
- Why private credit markets represent the greatest downside risk to commercial real estate in 2026.
Further reading:
Key themes for global commercial real estate in 2026
Global Commercial Property Chartpack (Q4 2025)
The Weekly Briefing from Capital Economics