2026 Mid-Year Review: Julie Freshman, MG Commercial Real Estate

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026?
MG Commercial has remained active throughout the first two quarters of 2026, with strong leasing and sales activity across the industrial, office, and retail sectors. From a leasing perspective, industrial transactions have accounted for the highest total lease value, with office leasing activity close behind. On the sales side, industrial properties have represented the largest share of transaction volume by property value during the first half of 2026. Office properties ranked second, followed by specialty properties, retail assets, and land sales.

What trends or shifts have stood out most to you so far this year within your industry?
One of the biggest trends we’ve seen in Rhode Island’s commercial real estate market this year is the continued strength of the industrial sector, particularly for warehouse, distribution, and flex properties, especially on the sales side. We’ve also seen a clear divide in the office market. While older or less desirable office space continues to face challenges, high-quality properties in strong locations are still attracting tenants. Retail has remained surprisingly resilient, especially among service-based and experiential businesses that are less affected by online shopping. In many Rhode Island submarkets, limited retail availability has helped keep rents and occupancy levels stable. Higher interest rates continue to impact investment sales, making both buyers and sellers more selective. As a result, transactions are taking longer to complete, with greater focus on property quality,

What challenges or opportunities have had the biggest impact on your business during the first half of 2026?
One of the biggest challenges in the industrial real estate sector has been the uncertainty created by ongoing global conflicts and their impact on supply chains and logistics. Rising fuel costs, shipping delays, longer lead times, and increased inventory stockpiling have made it more difficult for companies to plan for their long-term space needs.

As a result, this uncertainty has filtered into the industrial leasing market, leading to less on activity on leasing side vs. the sale side with some spaces taking longer to lease as tenants take a more cautious approach to expansion and occupancy decisions. However we expect this lull to be acute and for future reactivation to occur.

As we look ahead to the second half of the year, what are you watching most closely?
During the second half of 2026, we will be closely watching interest rates and their impact on investment sales, property values, and overall market activity. We will also be monitoring the industrial sector, where demand for warehouse and distribution space remains strong, but some leasing transactions have slowed as some companies take a more cautious approach amid economic uncertainty. In the office market, the focus will remain on tenant demand for high-quality space and whether leasing activity continues to improve as companies refine their long-term workplace strategies.