Dallas-based consulting firm BBG reports that while transaction activity is recovering, the ease of capital deployment has vanished. Elevated Treasury yields and persistent inflation have complicated financing, shifting the industry focus toward debt structures and rigorous operational audits. CEO Bill Britain noted that the market now rewards discipline over simple exposure, demanding deep scrutiny of tenant quality and location-specific performance.

Sector performance remains uneven. Retail has emerged as a surprising leader, bolstered by resilient consumer demand and a lack of new supply. Conversely, the office market remains sharply divided, where premium properties continue to thrive while commodity assets struggle to find footing. Industrial real estate maintains solid fundamentals, though success is increasingly tied to specific product types. Meanwhile, data centers and seniors housing continue to draw institutional capital, signaling a flight to assets with predictable, long-term demand. For the remainder of 2026, the firm suggests that success hinges on thoughtful capitalization and a forensic approach to asset-specific risk.