5 Deal Structures That Close Today

Proven Strategies for High-Rate, Choosy-LP Real Estate Markets

www.covercy.com

What’s Inside:

1. Sale-Leasebacks + Triple-Net Leases Lock in long-term, lease-backed income with credit- adjacent tenants.

2. Preferred Equity & Mezzanine Layers Inject flexible, higher-yield capital into your stack.

3. Waterfall Distribution Models Design performance hurdles and GP/LP incentive tiers.

4. Co-GP + Revenue-Sharing Structures Give early investors a slice of sponsor economics.

5. Creative Syndications & Anchor-Investor Incentives Use milestones, side-letters, or MFNs to secure capital.

Download the PDF in the link below

five deal structures closing in commercial real estate

 

2026 Global Investor Outlook 

Luke Dawson Head of Global and EMEA Colliers Capital Markets

Momentum returns to markets

Commercial real estate markets have shown remarkable resilience in 2025 despite significant uncertainty. In the second half of the year, we began to see momentum building. Institutional investors who had stepped back from their home markets are returning as confidence grows, big-ticket office deals are reemerging, industrial assets remain in strong demand, and data centers are witnessing unprecedented levels of fundraising. Looking ahead to 2026, we expect transaction volumes to rise steadily. Investors are becoming more selective and strategic, exploring opportunities beyond domestic and U.S. markets into Europe and high-growth Asia-Pacific (APAC) economies. More are pursuing specialized approaches, from upgrading assets to meet higher sustainability standards to forming joint ventures (JVs) that actively manage and grow portfolios. At the same time, risk management remains front of mind. Diversifying across sectors, geographies, and partnerships reflects a tactical, thoughtful approach, not a slowdown. It’s a sign of maturity, with investors positioning themselves to benefit from positive market momentum while adapting to new market realities. This report brings together the views of our senior experts around the world, our research data, and insights from our recent survey of international investors. Our goal is to provide you with a clear picture of the trends shaping the market and, most importantly, where opportunities lie in the year ahead. We hope you find it a useful guide as you navigate your strategies for 2026.

Capital deployment – Migration to more active strategies

Our 2026 investor capital deployment analysis points to a clear shift toward more active, controlled strategies.Investors increasingly favor direct investments and separate accounts over traditional fund structures, driven in part by underperformance and extended exit timelines within some funds. At the same time, the desire for strong platform investment is reflected in private equity and secondary funds increasingly investing in both property-owning entities (“propcos”) and operating businesses (“opcos”). Greater influence over strategy and the ability to scale successful brands across markets and regions are key benefits of this approach.

A global rebalancing as investors seek diversification

Investors are pursuing a more balanced global allocation in 2026, as reflected in fundraising trends. By the end of 2025 Q3, global fundraising had matched the 2024 total of around US$165 billion. North America accounted for 40% of the total, down from 50% in 2024, despite a notable increase in North American strategies during Q3. Meanwhile, Europe and APAC gained share, with European fundraising up 50% and APAC fundraising up 130% year-over-year. While the U.S. remains a key market, global allocations are clearly shifting as multi-regional strategies gain momentum.

Building and operating costs remain a challenge

High labor and raw material costs continue to weigh on construction activity across sectors, while elevated operating costs remain a key concern. These pressures are often compounded by rigid planning and regulatory frameworks, limiting development-focused investment strategies and slowing the introduction of new product to the market.

Fundamentals are improving

On the positive side, sentiment toward real estate fundamentals is improving. Market liquidity, debt and capital costs, and rental growth are viewed more favorably, while concerns about value declines and vacancy rates have eased.

Wariness around tariff and tech risks

The impact of tariffs and geopolitical risks has been limited so far, but trade tensions could affect prices and consumption. Rising inflation may trigger policy actions that dampen investor sentiment. Conversely, easing supply chains or lower material, labor, and energy costs could boost development in 2026, particularly in undersupplied tier-one cities and housing markets. Concerns also remain about a potential global equity bubble, with stretched valuations and imbalanced concentrations of capital that could impact global investment returns and allocations.

Investment Strategies Led by Market Dynamics
A supportive monetary policy environment as uncertainty persists

Markets such as the U.S. and the UK face a delicate balance between slow economic growth and persistent inflation, but additional rate cuts are likely in early 2026 as policymakers lean toward economic stimulus. Strong inflows into debt and credit markets have created ample liquidity, which, combined with lower rates, should support activity throughout the year. Yield spreads are already attractive, and further rate cuts are expected to enhance capital growth potential. Our survey shows that debt strategies (8%) are significantly less appealing to investors than core (17%) and core-plus (20%) strategies for 2026. As a result, these strategies are attracting more interest than current fundraising trends indicate. In total, 37% of investors prefer these approaches, compared with just 9% of funds being raised for core and core-plus strategies* . Early signs of this shift are already evident in direct transactions.

Sector Preferences – Office back in the spotlight

Overshadowed by industrial and logistics (I&L) and multifamily assets since the COVID-19 pandemic, office assets are coming back into focus for investors globally. Office activity in APAC remains strong, with a significant uptick across Europe and early signs of a pickup in momentum in North America. Activity is concentrating on locations with stable occupier demand, as well as opportunities to access assets at scale and create value — specifically through capex and refurbishment programs that raise sustainability standards and achieve rental uplift

Data centers boom, but investors grow more discerning

There has been a dramatic surge in capital being raised for data centers, with PERE research showing the sector accounted for 31% of total capital raised in 2025 Q1-Q3, up from an average of 15% since 2020. This means the sector has now displaced mainstays like I&L and office from a fundraising perspective, trailing only multifamily. While the U.S. remains the largest and most mature market, investor interest is global, driven by rapid AI growth and corporate investment from large tech firms and infrastructure funds. Looking ahead to 2026, the sector is expected to continue attracting attention, with investors focusing on energy availability and infrastructure, which remain key constraints on development in some regions.

Rising appetite for alternatives

While the I&L and residential sectors continue to attract strong interest, more investors are preparing to allocate tactically to growth markets where clear supply-demand imbalances are emerging across several alternative asset classes. One prominent example is student housing in Europe and APAC, where many see the sector entering the maturity phase. Another is self-storage, which continues to gain appeal across Europe and North America

To read the full report, please use the link below

https://redrockbusinesscapital.com/wp-content/uploads/2026/02/Colliers_2026GlobalInvestorOutlook_AE.pdf

 

Collier’s 2026 Outlook Report
Renewed Market Momentum

Now in its sixth year, Colliers’ 2026 Global Investor Outlook offers a comprehensive view of the trends shaping global real estate investment. Combining insights from our senior experts, proprietary research and survey responses from international investors, the report explores the key forces influencing capital flows and highlights promising opportunities for 2026, helping you make informed, forward-looking decisions.

We are seeing investor confidence return, with institutional capital re-entering markets and momentum building across office, industrial, and data center sectors. Investors are becoming more selective, exploring new regions and strategies, while risk management and diversification remain top priorities.

Global highlights:

Investors shift to active strategies for greater control. Nearly half (49%) favor direct investments and separate accounts. Private equity is also targeting both property-owning and operating businesses. Despite strong appetite for core and core-plus (37%), only 9% of real estate funds target them, revealing a market disconnect.

Global allocations are rebalancing, with Europe and Asia Pacific gaining fundraising share. Multi-regional strategies now account for nearly 30% of global fundraising.

Industrial, multifamily and retail remain resilient, drawing capital to logistics hubs, urban growth corridors and essential-service retail in supply-constrained markets.

Data centers are booming and offices are rebounding. From Q1–Q3 2025, data centers drew 31% of funds raised. Offices are regaining investor interest due to increasing return-to-office mandates.

Appetite for alternatives is rising. Student housing, self-storage, and healthcare buildings are attracting more capital.

Value-add strategies dominate as investors focus on repositioning assets. High costs are driving adaptive reuse, especially in tight markets. Office upgrades to meet sustainability and tenant needs are most active in APAC and Europe.

U.S. highlights:

Rising investor activity. The U.S. will remain a key source and destination for global capital. Values are on the rise, as is fundraising. Multifamily and industrial remain the top choices for capital allocation, but strategies are broadening, presenting unique investment targets across asset classes, markets, and submarkets.

Strategic opportunities. Investors are moving to capture opportunities presented by increasingly attractive pricing and improving fundamentals across the major asset classes. Understanding where rental growth potential lies is critical for success. Investors should target opportunities created by redevelopment or tightening supply, as these will drive returns in the coming year.

Data centers in focus. A surge in data center development is capturing investor attention. Unprecedented demand has supply running at full speed, deepening the depth of several core markets while creating new opportunities from coast to coast.

Read the full Report by clicking the link below

https://redrockbusinesscapital.com/wp-content/uploads/2026/02/Colliers_2026_Outlook_Report.pdf

 

CRE Debt Market Sees Steady Growth in Q3 2025

Q3 2025 CRE debt market held steady at $4.9T, with GSEs, insurers and securitized lenders driving growth as banks stayed cautious.
February 5, 2026
By Jordan B.

Key Takeaways

The total CRE debt market stood at $4.9T in Q3 2025, exhibiting steady lender composition.

Institutional lenders such as GSEs, securitized lenders, and insurers drove the most significant year-over-year growth.

Banks maintained cautious but stable CRE exposure, reflecting ongoing regulatory pressures.

Near-term maturities are concentrated among banks and securitized lenders, while GSEs and insurers hold mostly long-term debt.

CRE Debt Market Remains Stable

The commercial real estate (CRE) debt market ended Q3 2025 at $4.9T in outstanding balances, according to new Trepp research using Federal Reserve data. The overall market composition changed little even as financing costs remained elevated, with most lender categories showing modest growth in balance sheets.

Institutional capital—especially government-sponsored enterprises (GSEs), securitized lenders, and insurance companies—continued to deliver much of the incremental credit to the sector. Banks, meanwhile, remained conservative, growing their CRE portfolios at a slower but steady pace.

Institutional Lenders Drive Selective Growth

GSEs and securitized lenders each posted 7.3% year-over-year growth, while insurance companies expanded CRE holdings by 5.6%. Securitized lenders delivered the fastest quarter-over-quarter gains of any major lender group in Q3, up 3.7%. In contrast, banks only showed 1.7% year-over-year balance growth but have begun to show a stronger pace sequentially within 2025, as per Fed H.8 data.

Where CRE Debt Sits

Banks and thrifts remain the backbone of the CRE debt market, holding $1.77T (36.3%) in outstanding balances at the quarter’s close. GSEs followed with $1.11T (22.7%), insurers with $816B (16.7%), and securitized lenders with $748B (15.3%). Institutional lenders’ contribution to the CRE debt market continues to shape the sector’s growth and stability.

Maturity Profile Highlights Refinancing Dynamics

The distribution of CRE debt maturities highlights potential refinancing needs and varying stress points across lender types. Banks face about $488B in maturities through 2026—roughly 28% of their portfolio—with three-year median loan tenors. Securitized lenders will see about $286B mature (38% of total), making these two lender categories most exposed to near-term refinancing risks. GSEs and insurance lenders, by contrast, retain longer-dated debt, with the 2030+ bucket totaling nearly $1.9T. As a result, they face less immediate refinancing pressure, even as broader policy discussions continue around the future structure and oversight of the GSEs.

What’s Next

With the Federal Reserve’s first rate cut landing at the very end of September 2025, any relief on refinancing or new debt issuance will only become apparent in Q4 2025 and into 2026. The maturity landscape remains relatively stable, but capital availability and refinancing conditions will bear close monitoring as the impact of monetary easing moves through the CRE debt market.

To read the article follow the link  below
https://www.credaily.com/briefs/cre-debt-market-sees-steady-growth-in-q3-2025/?_bhlid=6ee2ccbfdfef7006b5a9ec512ac943c664d0c544

 

2026 U.S. Office Investment Forecast

2026 Outlook – Marcus & Millichap

Momentum is beginning to take hold in office properties as demand for space increases. While the road to recovery will likely be long and complex, many investors view the sector as having passed its greatest challenges. The transitioning market creates unique investment opportunities that favor seasoned operations, with each market, submarket, and asset facing its own reality. To help investors navigate this highly complex landscape, Marcus & Millichap presents the 2026 Office National Investment Forecast.

Key Features Include:

Detailed breakdown of the numerous factors shaping the complex office sector outlook

Supply and demand forecasts for 50 major markets across the country

Insights into leasing dynamics, investment sales trends, and potential distress considerations

To read the full report, please use the link below

https://redrockbusinesscapital.com/wp-content/uploads/2026/02/2026-Office-Investment-Forecast-2-pdf.pdf

 

Marcus & Millichap

Insights From The 2026 NMHC Conference

February 2026

Three Key Trends Emerged During the
National Multifamily Housing Council Conference

Investment activity is gathering momentum. Investor sentiment suggests an expansion in acquisition targets, reflecting improving confidence in 2026 market conditions

Capital availability among investors in attendance appeared elevated compared with recent years.

Numerous investors indicated plans to complete more transactions in 2026 than in 2025, with upwards of 15 trades in some cases.

Institutional investors and major investment funds, particularly those with dedicated capital sources, expressed heightened optimism about near-term market opportunities.

Syndicator attendance was lower than in previous years, though those present represented larger 

and more established operators with strong performance histories. 

However, excess supply in the Sun Belt markets was identified as a continued headwind.

The slowing pace of job creation may also weigh on demand for commercial real estate space this year. 

Nonetheless, there was a broad-based positive sentiment about the 2026 investment climate.

Many investors anticipate that once elevated supply levels are absorbed, market performance will accelerate, following what is expected to be a choppy 2026.

Debt capital availability is improving. Market participants indicated that lending channels are more active, suggesting stronger liquidity despite persistent rate uncertainty.

Investors noted an increase in debt capital availability, driven by both agency lenders and private lending sources.

The 20 percent rise in lending allocations from Fannie Mae and Freddie Mac was viewed as a contributing factor to improving financing conditions. 

Many investors expect interest rates to trend modestly lower in 2026, though they acknowledged substantial uncertainty around the outlook.

Lenders are accelerating the resolution of distressed assets. Many financial institutions have begun acting on overdue loans rather than extending loan terms and allowing investors to retain assets facing headwinds.

The recent shift away from “extend and pretend” practices marks a notable change in lender behavior compared with the past several years.

 Lenders will move distressed assets to market to resolve underwater loans and reduce balance sheet uncertainty, as many banks are now positioned to absorb losses

In some cases, equity holders may be substantially impacted by lenders’ pursuit of forced resolutions.

Some debt providers are collaborating with current operators to facilitate an orderly transition to stronger investors.

Other creditors are choosing to foreclose on struggling assets and appoint a receiver to stabilize the assets before sale.

Investors generally viewed this shift as positive, as it is expected to bring a wave of troubled assets to market at discounted prices and lower cost bases. 

Investor sentiment at the National Multifamily Housing Council Annual Conference was positive, with participants signaling increased activity and the early stages of a healthier cycle. 

*All data points are as of year-end.
Sources: Marcus & Millichap Research Services; Moody’s Analytics

https://www.marcusmillichap.com/research