I am cautiously optimistic about the mid-term prognosis for commercial real estate finance. The Mortgage Bankers Association expects CRE and multifamily mortgage originations to level out over the next few years, “at record or near record levels.” If the market is indeed peaking, the good news is that lenders are applying more diligence to their underwriting and risk management practices than they did in the 2000s.
Today vs. in the past, bankers regularly inquire about environmental and appraisal risk management best practices. They also implement more levels of diligence than in the past. Lenders are more concerned about protecting against down-side risks, and we see this as a positive sign.
As we enter the spring of 2026, the Rhode Island industrial real estate market stands on stable footing, following several years of resilience fueled by constrained supply, steady demand, and dynamic economic conditions.