CORFAC members show perseverance amid macroeconomic challenges

2026 Market Outlook

CORFAC International’s year-end 2025 survey of members from 75 independent commercial real estate firms revealed a real estate landscape defined by continued industrial strength, targeted optimism, and persistent macroeconomic challenges. Respondents shared where deal activity is occurring and what market factors they’re tracking in the first half of 2026.

“What stands out in this survey is the resilience of our members,” said 2026 president Joe Santaularia, Bradford Commercial Real Estate/CORFAC International in Dallas, Texas. “Even in a market marked by higher costs, tariff uncertainty and longer deal cycles, CORFAC professionals are finding ways to create value, particularly in industrial, logistics and markets benefiting from population and corporate migration.”

Industrial Still Reigns Supreme

Industrial continues to dominate both current and anticipated business activity across the network. Nearly two-thirds of respondents cited industrial/manufacturing and warehouse/distribution as key business drivers. This is similar to what the spring 2025 survey showed, when 70% of respondents said it was a leading driver of business, and 56% said they expected it to be the leading sector in the second half of the year.

Respondents point to supply-chain realignment, port-driven logistics demand, corporate relocations, and tight industrial inventories as key contributors. Several respondents also highlighted increased industrial investment sales activity in the last quarter of 2025, underscoring continued investor confidence in the sector.

Emerging Resilience in Office and Retail, But Deal Pace is Lagging

While industrial shows no signs of contraction, both office (44%) and retail (40%) are strengthening after periods of unprecedented challenges. Return-to-office mandates are a top positive influence on transaction activity, signaling gradual stabilization within the sector.

Retail demand is being shaped by adaptive reuse strategies and localized factors, creating opportunities for redevelopment, repositioning, and tenant optimization, according to respondents.

When comparing 2025 year-end activity to the previous year, responses revealed steadiness and caution. One-third of firms reported an increase in activity, while another third said transaction activity remained level year-over-year. The remaining third of respondents said activity had decreased slightly, but fortunately no members reported a significant decrease.

These dynamics reflect a market adjusting to new financial realities, according to respondents. Several members mentioned full pipelines paired with longer decision timelines, reinforcing the importance of patience and execution when it comes to closing transactions.

Market Movement and Network Referrals Drive New Business

Growth opportunities continue to stem from clients expanding operations (56%) and new companies moving into local markets (52%). Population migration, particularly out of higher-cost or heavily regulated regions, was a recurring theme among respondents.

Referrals remain a key strength of the CORFAC network, with nearly half of respondents citing referrals from existing clients or allied service providers, alongside in-network referrals from fellow members contributing to new business.

Similar to their last time surveyed, respondents cited tariffs and trade policies, high construction and labor costs, and difficulty obtaining financing as the most significant negative influences on transaction activity at year-end.

CORFAC members are still searching for equilibrium when it comes to interest rates. Interest rate uncertainty continues to delay decision-making, with many clients waiting for clearer economic signals. Meanwhile, stabilizing interest rates were also cited as a positive factor, suggesting that even modest clarity may reignite some stalled transactions in 2026.

2026 Outlook: Tempered Confidence

Industrial demand, regional growth, and cross-market collaboration will shape what’s to come in 2026. In volatile market conditions, experience and collaboration are required to get deals completed. The CORFAC model of independent, deep local expertise with a global network to tap for intelligence and referrals will contribute to their clients’ success.