CRE Recovery Proves Uneven as 2026 Volatility Reshuffles Alpha

Despite a tumultuous geopolitical backdrop and upward pressure on global yields, Principal Asset Management’s mid-2026 outlook, finds the CRE cycle still in recovery—though not equally for all segments. While private valuations are rising and transaction volumes rebounded in the first quarter, the recovery now manifests as decidedly K-shaped. REITs have moved from recovery to expansion, yet distress, while peaking, remains above pre-pandemic averages. Returns are positive for both US and European markets, but the pace, drivers, and risks of that recovery differ sharply across asset types and geographies. Read on to learn more: Link

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