Category: Spotlight Content

NEREJ’s 2026 Mid Year Review Spotlight is here! This special section features perspectives from across commercial real estate as firms reflect on the first half of the year and discuss the trends, challenges, and opportunities shaping the months ahead.

Hingham, MA A sharp edge is treated with a rounder curve. A bold typeface gives way to something more conversational. A cool purple warms up a few degrees. These subtle changes Ellis Realty Advisors (ERA) made to its visual identity in 2026 reflect the way ERA has always approached its work, with an emphasis on accessibility, curiosity, and a dedication to service that gets results for their clients. Now mid-way through 2026, the work the refresh made possible is well underway.

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026? The 1031 exchange market has been robust in the first half of 2026, even while interests have remained elevated for the past few years. So, while the typical forward 1031 exchange is still quite active, we have seen a greater awareness and knowledge of the various types of 1031 exchanges by investors.

What trends or shifts have stood out most to you so far this year within your industry? Dramatic technologic shifts are taking place that are profoundly impacting on real estate valuation. Artificial Intelligence (AI) Impacts. Appraisers – both residential and commercial - need to confront the challenges and opportunities that the full emergence of Artificial Intelligence bring as an essential tool.

What trends or shifts have stood out most to you so far this year within your industry? We have also taken a hard look at how we work with our subcontractor partners and the answer, more than anything, comes down to relationships. In an uncertain market, the contractors who get the best pricing, the most reliable commitments, and the most responsive teams are the ones subs want to work with.

What trends or shifts have stood out most to you so far this year within your industry? One of the biggest shifts we’ve seen this year is a meaningful change in how investment capital views retail – particularly suburban, open-air assets. What was once considered contrarian is now widely accepted, with these properties delivering some of the most attractive risk-adjusted returns in commercial real estate.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026? Hesitancy is a forbidden word, but it also creates opportunities for landlords and tenants. Opportunities to refit and freshen existing spaces, renegotiate lease extensions and expand in place which can be a boon to tenants - moving is expensive, time consuming and disruptive.

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026? Dacon has long been strongly positioned in the industrial sector, including manufacturing and distribution facilities, historically accounting for approximately 50% of our project portfolio. Today, that figure has grown to roughly 75-80% of our workload.

As we look ahead to the second half of the year, what are you watching most closely? Key issues to watch in 2026 will be interest rate direction and capital markets. The biggest variable remains the trajectory of interest rates. Even modest declines in borrowing costs could significantly improve acquisition economics, refinance activity, and property values.

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026? It has been extremely busy first half in 2026. We have a number of hotel properties under agreement and to close in the next couple of months. Many of these sales are of hotels that were not openly marketed but had multiple offers as the inventory of hotels for sale is low and buyer demand is high.

What trends or shifts have stood out most to you so far this year within your industry? The entrance of institutional buyers into the Industrial Outdoor Storage market has created challenges for tenants. These tenants have tended to be our clients, since we are focused on working with operating companies rather than investment groups.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026? Industry experts point to several forces that will determine how much of today’s policy and financing momentum can translate into sustained affordability in 2026 and beyond. Interest rates remain the dominant variable and future cuts will flow into both construction and permanent financing over the coming year.