The NAIOP Research Foundation has released a new report analyzing economic, capital markets and real estate market data that highlights that lending and transaction volumes are growing across property types and that valuations have largely stabilized.

Key findings include that banks have increased lending to commercial properties while conduit lenders have stepped back. Collectively, federal agencies, government-sponsored enterprises and mortgage-backed securities investors remain top buyers of loans to multifamily real estate. The report also noted that private buyers dominate overall purchasing activity, with institutional investors focused on industrial and multifamily properties.

U.S. markets entered 2026 in a transitional phase marked by improving liquidity, moderating inflation and persistent rate-driven volatility. According to the report, distress was seen concentrated in investment-grade properties and commercial mortgage-backed securities loans, while construction activity has moderated in industrial and multifamily sectors.