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Key Takeaways from Marcus & Millichap’s 2026 Economic Webinar
Woodland Hills, CA – January 23, 2026 – IMG recently attended Marcus & Millichap’s presentation, “Will 2026 Mark the Transition to a More Dynamic CRE Outlook?”, which brought perspective from leading economists and industry executives on the forces shaping commercial real estate in the year ahead.
The discussion highlighted a U.S. economy navigating significant crosscurrents. On the positive side, fiscal stimulus, tax cuts for business and individuals, and increased government spending on defense and infrastructure are supporting economic momentum. At the same time, deglobalization trends, tariff uncertainty, and tighter immigration policies are weighing on job growth and adding volatility to financial markets.
For commercial real estate, the panel emphasized that the sector has undergone a meaningful recalibration. Since asset values peaked in 2021, cap rates have expanded by roughly 80 to 130 basis points across property types, driving a multi-year pricing reset and creating the widest yield spreads seen in recent years. In multifamily specifically, cap rates now generally range from the high-4% to mid-7% range, reflecting both higher interest rates and greater risk differentiation across markets.
Importantly, supply dynamics are shifting. Multifamily starts have fallen sharply, with new starts down more than 70% and units under construction down roughly 50%, signaling a meaningful slowdown in future deliveries. While affordability challenges remain and homeownership barriers persist, apartment absorption continues near historic norms, supporting longer-term fundamentals.
Looking ahead, investors are focused on interest-rate changes and access to loans. While markets are pricing in potential Federal Reserve rate cuts in 2026, uncertainty around long-term Treasury yields remains. Encouragingly, the Mortgage Bankers Association forecasts an increase in CRE lending activity next year, which could improve property value and more transaction volume.
Overall, while panelists acknowledged that near-term uncertainty remains, 2026 may represent a transition toward a more active and opportunity-driven CRE environment, particularly for disciplined investors focused on fundamentals, risk-adjusted returns, and long-term value creation.
About Marcus & Millichap / Institutional Property Advisors (IPA)
Marcus & Millichap is a national commercial real estate investment services firm providing brokerage, financing, and research across major property types. Its Institutional Property Advisors (IPA) division focuses on institutional and major private capital, advising on large and complex transactions through deep market insight and data-driven analysis.
About Investors Management Group
Founded by Neil Schimmel, IMG is a nationally acclaimed real estate investment and asset management firm highly specialized in apartment communities. Our mission is to create vibrant, sustainable living environments through strategic investments and a commitment to community development. With a network of over 1,000 accredited investors, we strive to enhance the quality of life for our 5,000+ tenants nationwide and support the growth of local neighborhoods. IMG’s culture is characterized by innovation and a steadfast commitment to creating value in multifamily investments. Learn more