Key Takeaways From the 2026 Commercial Real Estate Finance Council Conference

The 2026 CREFC Conference in Miami Beach this month drew record attendance of more than 2,400 participants, underscoring the market’s renewed engagement as capital returns and transaction momentum builds. While sentiment was broadly constructive, discussions across panels reflected a clear message: 2026 will reward discipline, experience, and selectivity as capital availability improves faster than asset fundamentals in certain sectors.

Issuance and Market Structure

• Commercial mortgage-backed securities (CMBS) and single-asset single-borrower (SASB) loan issuance saw a strong recovery in 2025, mainly driven by SASB deals and CRE collateralized loan obligations (CRE CLOs). Issuance of conduit loans—loans pooled together and sold as securities—also improved, but growth was limited by high interest rates and concerns about the quality of the properties used as collateral.
• About 70% of conduit loans issued were for five-year terms, since many borrowers are hesitant to commit to longer-term, fixed rates right now.
• For conduit loan issuance to increase further, there would likely need to be a drop in the 10-year U.S. Treasury yield and more comfort with 10-year loan structures.
• The market is splitting into two groups: properties that can easily get new financing, and those that may need restructuring or other solutions. Office buildings make up about one-third of upcoming loan maturities.

Data Centers: Demand vs. Practical Constraints

• Data centers accounted for roughly 10% of SASB issuance, but deal sizes, insurance availability, tenant concentration, power access, and obsolescence risk are limiting factors.
• Banks and specialized capital are viewed as best positioned to take down these large transactions, leaving room for debt funds to grow elsewhere.
• AI-driven efficiency gains are expected—but most panelists believe meaningful process change is still several years away.

Multifamily: Strong Fundamentals, Higher Execution Risk

• Multifamily fundamentals remain solid, particularly in agency portfolios, but expense growth driven by inflation has stressed many deals.
• Most problems are concentrated among inexperienced sponsors, deferred maintenance, and aggressive 2021–2023 underwriting.
• Smaller loans and non-institutional sponsorship now require more intensive due diligence, not less.
• Agencies emphasized sponsor liquidity and willingness to contribute fresh equity as the key differentiator; most watchlist issues are expense driven.

Debt Funds and Alternative Lenders

• Debt fund volumes were up materially in 2025, with many platforms reporting ~50% growth, and production budgets for 2026 up as much as 35%.
• Fundraising conditions are improving, and records are expected to be broken in 2026.
• Debt funds have evolved into “all-weather lenders,” increasingly part of the takeout story—not just transitional capital.
• Competition from banks has intensified, shifting debt funds from price makers to price takers, with flexibility and execution speed as key advantages.

Banks, Portfolio Lenders and Private Credit

• Banks are back with cleaner balance sheets and tighter spreads, especially in construction and bridge lending.
• Portfolio lenders are offering broader, blended capital solutions, driving spread compression across sectors.
• Private credit has become less predatory and more integrated, focused on loans paying off rather than owning assets.
• Insurance companies are increasingly partnering with private credit managers to deploy capital and match duration.

Bondholder Viewpoint

• Deals are taking longer to complete, —usually 60 to 90 days— and investors now want borrowers to put in more of their own money.
• Investors are especially concerned about having enough control and clear information, which is a bigger issue in smaller loan groups where loans are shared equally.
• Across all property types, going over budget and not having enough money set aside for unexpected costs are still major risks.

Office: Capital Intensive, Selectively Financeable

• While office remains the most challenged asset class, requiring significant fresh capital and patience, there is bullishness in certain markets and financing properties with a reset basis.
• Borrowers are reluctant to fund reserves, while lenders and investors insist on them.
• For troubled loans, lenders prefer loan and note sales over foreclosure, redeploying capital rather than owning assets.

Macro and Global Capital

• Most attendees expect modest Fed cuts with limited movement at the long end of the curve.
• Concerns were raised around Fed politicization, geopolitical risk, and global diversification away from the U.S. dollar.
• Despite this, global investors continue to view U.S. CRE as offering attractive relative value due to liquidity and market efficiency.

The Slatt Capital View

The year 2026 is shaping up to look a lot like 2025—only busier. Capital is available, competition is intense, and lenders have fresh allocations to deploy. Most lenders want to work with experienced sponsors and capital advisors who can present realistic business plans and underwrite properly. With increased volume and lean staff, lender capacity is likely to be an issue, further reinforcing the need for the sponsor to work with experienced capital advisors who have strong lender relationships. Personal relationships and people continue to drive most deals, which is why CREFC saw record attendance.