SitusAMC Releases ValTrends Report, “Recovery Interruptus,” as Continued Uncertainty Slows CRE Momentum

New York, NY – May 21, 2026 – SitusAMC, a leading provider of strategic outsourcing, advisory, and technology solutions to the real estate finance industry, announced the release of its latest quarterly research report, ValTrends, offering data-driven insights into commercial real estate (CRE), valuation trends, space market fundamentals, and investor sentiment. This quarter’s report, titled Recovery Interruptus, examines how macroeconomic and geopolitical uncertainty interrupted signs of a potential CRE recovery that had begun to emerge at the end of 2025. 

The report, authored by Peter Muoio, PhD, Head of SitusAMC Insights, and Jen Rasmussen, PhD, Vice President, SitusAMC Insights, combines proprietary market research with exclusive survey data from institutional investors to provide a comprehensive and robust analysis of capital market conditions, investor sentiment, and property-sector performance. 

Download the report here: ValTrends 1Q 2026: Recovery Interruptus  

After several years in which early signs of recovery have repeatedly been disrupted by external forces, the first quarter of 2026 marked another difficult start for the industry. The report notes that escalating geopolitical tensions and their potential impact on inflation and interest rates once again raised concerns that commercial mortgage rates could remain elevated, limiting transaction activity and delaying a broader market thaw. 

Key takeaways include:  

• Cash Regains Favor as Investors Turn More Defensive 
• SitusAMC’s proprietary first-quarter data shows that cash became the most favored asset class in the first quarter amid heightened uncertainty.  
• Investor preference for bonds also increased, while preference for CRE declined after three consecutive quarters in the top spot, leaving CRE tied with bonds for the No. 2 ranking. 

• Investor Hold Sentiment Rises as Transaction Activity Slows 
• After showing potential signs of a market thaw at the end of 2025, investor preference to hold increased from 63% to 70% in the first quarter. At the same time, transaction volume slumped again in February, declining nearly 20% to $30 billion, the lowest monthly volume since April 2024. 

• Capital Becomes More Disciplined 
• Investors surveyed by SitusAMC reported that capital availability is decreasing and becoming more disciplined, placing downward pressure on activity and workouts. 
• The report suggests that lenders and investors remain cautious as uncertainty around rates, inflation, and global risk continues to weigh on near-term decision making. 

• Apartment Assets Lead Sector Preference 
• Apartments were the clear winner in the first quarter, with investor preference increasing from 44% to 60%.  
• While office preference declined from 22% to 16%, it remained at its second-highest preference rating since the onset of the pandemic and tied with industrial for second place, suggesting that the office sector may be showing early signs of renewed investor interest. 

• Renewal Probabilities Decline Across Major Property Types, but Alternative Segments Strengthen 
• SitusAMC’s proprietary first quarter data also shows that renewal probabilities declined across the four main property types and are down year-over-year. 
• Office posted the steepest annual decline, with renewal probability now at 54%, nearly 1,000 basis points below its long-term average. 
• By contrast, renewal probabilities increased across all alternative property types tracked, including affordable housing, self-storage, senior housing, data centers, and medical office.  

“Commercial real estate entered 2026 with early signs of a thaw, but they were quickly interrupted by renewed uncertainty around inflation, interest rates, and geopolitical risk,” said Muoio. “Investors are still looking for opportunities, but the first quarter data shows a clear shift toward caution, discipline and liquidity.” 

“While broader capital markets remain constrained, the report also points to areas of resilience,” said Rasmussen. “Apartments continue to stand out as the favored property type, and alternative sectors are showing strength in renewal probabilities, even as the four major property types face more pressure.” 

The full ValTrends report includes detailed data by sector and metro, including total return, occupancy change, and rent growth, as well as anonymized commentary from institutional investors and strategic insight to help market participants make informed decisions for their investments in a complex and fast-moving CRE environment. 

The release of this report reinforces SitusAMC’s commitment to providing deep insights, analysis, and intelligence that power the full lifecycle of real estate finance. The report is invaluable to those seeking to stay informed and competitive in today’s evolving business environment. 

Download the report here: ValTrends 1Q 2026: Recovery Interruptus 

About SitusAMC   

SitusAMC is a leading independent provider of strategic outsourcing, advisory, talent, and technology solutions to the commercial and residential real estate finance industries. The company helps clients identify and capture opportunities in their real estate businesses through industry-leading solutions that drive operational efficiency, increase business effectiveness, and improve market agility across the entire lifecycle of their global real estate activity. For more information visit www.SitusAMC.com  

Press Contacts:   

SitusAMC 

Andy Garrett   
Head of Marketing  & Communication 
andygarrett@situsamc.com