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**The State of CRE: Berkadia Experts Review 2025 and Forecast a Busy 2026**
Reflecting on the commercial real estate (CRE) market in 2025, Berkadia executives summarized the year using a few choice words. Mike Miner, Senior Vice President and Head of Investment Sales at Berkadia, described 2025 as “bumpy, busy, basics,” with “basics” referring to the foundational economic principles of supply and demand. These basics, he emphasized, will continue playing a pivotal role as the industry moves into 2026.
Josh Bodin, Senior Vice President of Capital Markets Strategy & Trading and co-leader of Berkadia’s Freddie Mac conventional relationship, characterized the year using the words “active, selective, surprising.” He explained that while capital sources remained engaged, they were notably discerning regarding their investment targets and strategies. The term “surprising” referenced unforeseen macroeconomic developments, including unexpected tariffs and fluctuations in the yield curve.
Miner and Bodin joined Ernie Katai, Executive Vice President and Head of Production at Berkadia, for a discussion during “The State of CRE: 2025 in Review and 2026 Forecast,” part of Berkadia’s “Inside the Deal” podcast series. All three executives acknowledged a marked increase in transaction velocity heading into the new year. “It feels good in that deals are getting done with some momentum,” Katai remarked.
However, the path to completing these transactions has been anything but easy. “I had an investment advisor say to me the other day that he’s never won more listings than he has this year, and he’s never had to work harder on deals than he has this year,” Miner shared.
Despite headwinds, larger portfolio and entity-level transactions made a notable comeback in 2025 through what Miner referred to as “AUM aggregation.” Yet, he noted that private clients remained the most active contributors in the market due to their access to discretionary capital, allowing them the flexibility to take on opportunistic deals.
The buyer landscape also broadened in 2025, with investors ranging from separately managed accounts to non-traded REITs stepping in. In the debt markets, Bodin highlighted increased activity, including a notable uptick in securitized product issuances. A significant late-year development came as the Federal Housing Finance Agency boosted multifamily caps for both Fannie Mae and Freddie Mac by $15 billion each for 2026.
As for traditional banks, Bodin observed a more cautious, selective approach to direct lending. “You’ve got lower leverage and a focus on strong sponsors and clear exit strategies,” he said, noting that this disciplined stance is expected to persist in 2026.
Looking ahead, Bodin predicted a continued surge in debt availability across the capital spectrum. “I think multifamily borrowers will have more options than ever next year,” he stated. Still, he cautioned that while the lending market remains deep, it is increasingly selective and strategic in deploying funds. “There’s no shortage of capital for multifamily, but it’s clear that lenders are being more thoughtful,” he added.
On the investment side, Miner said that owners are intensifying their focus on operational efficiency, with attention shifting to occupancy levels, rent growth, and net operating income (NOI). “You really have to dig in at the property level—understand the submarket, ensure you’re pricing correctly for future rent increases, and grasp all the unique aspects of that specific property,” he advised.
The conversation extended beyond market dynamics to include discussions on transactional trends, renter demographics, fundraising strategies, investment deployment, and government influence at both local and federal levels.
The full episode, “The State of CRE: 2025 in Review and 2026 Forecast,” is available on major podcast platforms, including Apple Podcasts, Spotify, Amazon Music, and iHeartPodcasts.
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*This article originally appeared in Connect CRE as: “The State of CRE: Berkadia Experts Review 2025 and Forecast a Busy 2026.”*
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