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Despite ongoing challenges across commercial real estate—from high interest rates to tariffs and persistent volatility—industry leaders at CREtech New York 2025 expressed a cautiously optimistic outlook. The panel, moderated by Vaibhav Gujral of McKinsey & Company, featured executives from Tanger, Bozzuto, Link Logistics, Ares Management, and PGIM Real Estate, each weighing in on where they see momentum heading into 2026.

Logistics Remains Strong
Link Logistics CEO Luke Petherbridge highlighted the continued strength of the industrial and logistics sector, noting that leasing activity has surpassed 2024 levels despite economic uncertainty. He attributed the demand to the “re-industrialization of America,” driven by e-commerce and data center expansion.

Multifamily Market Rebalancing
Toby Bozzuto of Bozzuto reported a more balanced multifamily market as new deliveries taper off. He described it as a “positive landlord market,” particularly as oversupply in cities like Miami and Atlanta begins to ease.

Retail and Supply Constraints
On the retail side, Tanger’s Stephen Yalof and Ares’ Andrew Holm both underscored a slowdown in new development. With department store closures continuing and limited ground-up construction, both see opportunities in acquisitions and adaptive reuse. Holm added that Ares has seen a notable uptick in industrial and retail leasing activity over the past 18 months.

Capital Still Cautious
Offering a more reserved take, PGIM’s Cathy Marcus noted that while liquidity has returned, investor activity has not yet followed at historic levels. “There’s been a global repricing,” she said, “but we haven’t seen the behavior that typically comes with it.”

Opportunities for the Bold
Despite uneven recovery, several panelists said that well-capitalized firms can use this period to play offense. Tanger recently acquired a Kansas City shopping center for “40 cents on the replacement dollar,” while Bozzuto launched a new fund to target discounted Class A multifamily assets.

Looking Ahead to 2026
While 2025 has been marked by slow transaction volume and cautious capital, the group shared optimism for improvement next year. Marcus summed it up best: despite a tough landscape, she remains “very optimistic about 2026.”

 

Original article posted on October 21, 2025

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