Bond Market Turbulence Saps CRE Momentum
The bond market hasn’t derailed the commercial real estate sector’s 2026 recovery ambitions — which started with enthusiasm and $113B in first-quarter U.S. transaction volume — but it has made it much harder.
The recent run-up in yields on Treasury bonds is buffeting the momentum that was building in the first quarter and sapping optimism from the marketplace. Debt costs are expected to stay elevated as the war with Iran drags on, and it is leading to some revisions to what had been a relatively sunny forecast for the sector.
“We came into 2026 as an industry with a lot of hopes….
