Why CRE Deals Are Taking Longer To Close In 2026
Persistent capital market stress is keeping commercial real estate deals slower and more complicated than investors expected heading into 2026, according to industry leaders at GlobeSt.'s Women of Influence Conference.
Commercial real estate executives at the Denver event said that while sentiment has improved this year, transaction activity has not caught up. Elevated interest rates, stubborn inflation and tight equity markets are stretching timelines and pushing investors to repeatedly rework capital stacks. Panelists agreed that the hoped-for 2026 inflection point has yet to turn into a meaningful increase in deal volume.
Michelle McAtee, chair of the real estate group at Jenner & Block LLP, said legal negotiations have become more drawn out as parties struggle to price risk in a volatile environment. "It is taking longer to get things done," she said, noting that deals now routinely go through dozens of document revisions before closing. The extended back-and-forth reflects a market where buyers, sellers and lenders are all demanding more protections before committing capital.
Capital Stacks Under Pressure
Panelists pointed to the capital markets as the main drag on deal activity this year. Julie Baird, president of First American Exchange Company, said many firms entered 2026 assuming additional rate cuts and stronger transaction activity, only to be met with persistent inflation and slowing hiring. Those dynamics have made it harder to pencil deals and have kept many investors in wait-and-see mode.
According to Lauren Cahill, senior vice president at Grubb Properties, developers continue to struggle with "sticky" equity even when acquisition opportunities are available below replacement cost. She described finally closing a transaction after years of negotiations and multiple revisions to the capital stack, underscoring how much effort is now required to bring all parties to agreement. For investors, that experience illustrates both the appeal of current pricing and the difficulty of getting capital aligned in a choppy market.
Looking To 2027 And Beyond
Stacey Anderson, CFO of Ambrose, captured the industry's mindset with a quip that "heaven is in 2027," reflecting the view that recovery will take longer than many initially anticipated. Her remark echoed a broader sense that the market is in an extended holding pattern rather than on the cusp of a rapid rebound.
Even so, panelists emphasized that flexibility and patience are essential traits for investors and operators navigating prolonged uncertainty. Deals are still happening, but they require more time, more creativity in structuring and more willingness to revisit terms as conditions change. As one speaker suggested, those who can stay disciplined now may be best positioned to take advantage when capital markets finally loosen and transaction activity begins to accelerate.
Come back to read more coverage from our conference.
How Women In CRE Are Redefining The C-Suite
Women CRE Leaders Urge Audience To Embrace Career Discomfort
Why CRE's Next Generation Of Leaders Will Depend On Sponsorship
Amanda Knox Tells Women Of Influence To Take Back Their Story
Source: GlobeSt/ALM