M id A tlantic Real Estate Journal — February 2026 — 3
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M id A tlantic R eal E state J ournal 2026 Market Outlook CORFAC members show perseverance amid macroeconomic challenges
ORFAC International’s year-end 2025 survey of members from 75 in- dependent commercial real es- tate firms revealed a real estate landscape defined by continued industrial strength, targeted optimism, and persistent mac- roeconomic challenges. Re - spondents shared where deal activity is occurring and what market factors they’re tracking in the first half of 2026. “What stands out in this survey is the resilience of our members,” said 2026 president Joe Santaularia , Bradford Commercial Real Estate/ CORFAC International in Dallas, Texas. “Even in a mar- ket marked by higher costs, tariff uncertainty and longer deal cycles, CORFAC profes - sionals are finding ways to create value, particularly in in- dustrial, logistics and markets benefiting from population and corporate migration.” Industrial Still Reigns Supreme Industrial continues to domi- nate both current and antici- pated business activity across the network. Nearly two-thirds of respondents cited industrial/ manufacturing and warehouse/ distribution as key business drivers. This is similar to what the spring 2025 survey showed, when 70% of respondents said it was a leading driver of busi- ness, and 56% said they expect- ed it to be the leading sector in the second half of the year. Respondents point to supply- chain realignment, port-driven logistics demand, corporate re- locations, and tight industrial inventories as key contributors. Several respondents also high- lighted increased industrial investment sales activity in the last quarter of 2025, un- derscoring continued investor confidence in the sector. Emerging Resilience in Office and Retail, But Deal Pace is Lagging While industrial shows no signs of contraction, both of- fice (44%) and retail (40%) are strengthening after periods of unprecedented challenges. Return-to-office mandates are a top positive influence on transaction activity, signaling gradual stabilization within the sector. Retail demand is being shaped by adaptive reuse strat- egies and localized factors, creating opportunities for rede- velopment, repositioning, and tenant optimization, according to respondents. C
When comparing 2025 year-end activity to the previ- ous year, responses revealed steadiness and caution. One- third of firms reported an increase in activity, while another third said transaction activity remained level year- over-year. The remaining third of respondents said activity had decreased slightly, but fortu- nately no members reported a significant decrease. These dynamics reflect a market adjusting to new fi- nancial realities, according to respondents. Several members mentioned full pipelines paired with longer decision timelines,
reinforcing the importance of patience and execution when it comes to closing transactions. Market Movement and Network Referrals Drive New Business Growth opportunities con- tinue to stem from clients ex- panding operations (56%) and new companies moving into local markets (52%). Population migration, particularly out of higher-cost or heavily regulated regions, was a recurring theme among respondents. Referrals remain a key strength of the CORFAC net - work, with nearly half of re- spondents citing referrals from
existing clients or allied service providers, alongside in-network referrals from fellow members contributing to new business. Similar to their last time sur- veyed, respondents cited tariffs and trade policies, high con- struction and labor costs, and difficulty obtaining financing as the most significant nega - tive influences on transaction activity at year-end. CORFAC members are still searching for equilibrium when it comes to interest rates. Inter- est rate uncertainty continues to delay decision-making, with many clients waiting for clearer economic signals. Meanwhile,
stabilizing interest rates were also cited as a positive factor, suggesting that even mod- est clarity may reignite some stalled transactions in 2026. 2026 Outlook: Tempered Confidence Industrial demand, regional growth, and cross-market col- laboration will shape what’s to come in 2026. In volatile mar- ket conditions, experience and collaboration are required to get deals completed. The CORFAC model of independent, deep local expertise with a global network to tap for intelligence and referrals will contribute to their clients’ success. MAREJ
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