FALL INSIGHTS FROM CRE PROFESSIONALS
Josh Kanter Managing Director, Investments SURMOUNT
Derek Brazeau Mutlifamily Broker Hayes and Sherry
Will Kelleher Managing Partner Kelleher & Sadowsky Associates
What trends or shifts do you see shaping your industry this fall and into 2026? We believe interest rates will remain the defining market force heading into next year. The triple net lease sector has shown resilience in recent years, though higher rates slowed activity in 2025 as institutional buyers sought higher returns and 1031 and private demand softened. Since the first rate cut in September, we’ve seen clear signs of renewed momentum. As rates continue to ease, we expect stronger transaction volume and investor confidence in 2026. What’s one major project, initiative, or innovation your firm is focused on in the months ahead? Some of the stron- gest opportunities in Q4 stem from the return of 100% bonus depreciation under the recently enacted One Big Beautiful Bill Act. Investors are actively acquiring high-quality gas station and car wash properties at attractive cap rates while leveraging accelerated depreciation to offset significant tax liabilities. Bonus depreciation remains one of the most power- ful advantages in real estate investing, yet many investors still overlook it. We expect both demand and investor awareness to continue rising in the years ahead.
What trends or shifts do you see shaping your industry this fall and into 2026? This fall, I’m seeing Rhode Island’s multifamily market pick up after a slower start to the year. Investors are getting back into the mix as interest rates ease and financing becomes more accessible, which is helping deals move again. Activ- ity is strong across both urban and suburban markets, and larger portfolio transactions are signaling solid confidence in the sector. Heading into 2026, I expect deal flow to keep building as these trends continue. What are you most excited about for the future of your sector? I’m excited to see the multifamily sector entering a new growth phase after a period of hesitation. The combination of improved lending conditions, stable pricing, and strong demand is creating a healthier, more active market. There’s a lot of opportunities ahead for creative deal-making and strategic investments, and it feels like the market is setting up for a strong run in 2026.
What trends or shifts do you see shaping your industry this fall and into 2026? As debt becomes more accessible heading into 2026, the commercial real estate landscape across Central Massachu- setts – and all New England – presents opportunities for repositioning and growth. Key trends include refinancing and debt restructuring, a flight to quality that separates Class A properties from others, and the adaptive reuse of older or functionally obsolete buildings. Demand remains strong in retail, industrial, logistics, and last-mile distribution, while multifamily continues to demonstrate resilience and development potential. What challenges or opportunities do you anticipate for your clients as the market heads into Q4? While refinancing pressures, tight credit, and construction costs remain challenges, they also create opportunities for creative repositioning. By approaching the market with adaptability and strategic insight, we help clients unlock new capital and long-term value.
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We’re The Team To Make It Happen.
Worcester boasts the fastest growth rate among New England’s ten largest cities and has become one of the region’s most desirable destinations for new development. At Kelleher & Sadowsky, our deep local knowledge and proven experience across every sector—retail, manufacturing, distribution, life sciences, office, and multi- family—position us to help you identify and achieve your investment goals. Discover the opportunities driving Worcester’s remarkable growth. Call 508-755-0707 to start the conversation.
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2025 FALL PREVIEW
October 31, 2025 43
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