Q2 2026 Market Outlook: What We’re Seeing in Multifamily, Hotel, and Office Lending 

As we move into the second quarter of 2026, the commercial real estate lending environment continues to evolve. Interest rate uncertainty has eased somewhat, origination volume is expected to rebound, and borrowers are re-engaging with development and acquisition opportunities. At the same time, lenders — including HALL Structured Finance — are being intentional about where and how they deploy capital. 

Here is what we are seeing across the three asset classes we focus on most. 

Multifamily: Sustained Demand, Slowing Supply 

Multifamily remains one of the most active segments in commercial real estate finance. The Mortgage Bankers Association (MBA) projects total multifamily lending will reach nearly $400 billion in 2026, supported by long-term demographic demand and ongoing development needs (MBA CREF Forecast).  

One shift we are watching closely is the slowdown in new supply. The construction pipeline has thinned considerably, and we expect that to support fundamentals — particularly in markets where housing demand continues to outpace delivery. Coastal and Midwest markets with limited new inventory are attracting the strongest lender interest. Sun Belt markets are still working through elevated supply in certain submarkets, which calls for more conservative underwriting assumptions. 

At HALL Structured Finance, multifamily is one of our core focuses. We recently closed construction loans for Orem Circle in Houston ($37M), Washington Apartments in Eau Claire, WI ($34.7M), Park Ave Commons in Tacoma, WA ($27.9M), and Prado Lofts in Jackson, MS ($28.4M) — each reflecting our commitment to financing projects that address real housing needs in underserved markets. We are not subject to the regulatory constraints that limit many banks, which allows us to structure loans in a creative way that matches the realities of each deal. 

Hotel: Navigating Maturities, Finding Opportunity 

Hospitality continues to be a sector where preparation and sponsorship quality matter enormously. According to the MBA, 30% of hotel mortgage balances are scheduled to mature in 2026 — the highest share of any property type (MBA CRE Loan Maturity Volumes). Many of those loans were originated in a lower-rate environment and will need to be refinanced at meaningfully higher debt costs. That pressure is real, and it is creating both challenges and opportunities in the market. 

As we noted following ALIS 2026, capital is still available for hotel projects — but it is more selective. Lenders want to understand the story behind the deal, not just the pro forma. Sponsors who can clearly articulate their operating strategy, manage costs, and demonstrate credibility are finding financing partners. Those relying on market-level recovery to carry the business plan are encountering more friction. 

We remain active in hotel lending. Recent transactions include a $60.25M construction loan for The Ballad Hotel, a Hilton Tapestry property in Clearwater, FL; a $53.5M construction loan for MTN Scout Hotel in Truckee, CA; and a $68.5M construction loan for Compass by Margaritaville in Myrtle Beach, SC. For well-prepared sponsors, we believe this environment — particularly the limited new supply pipeline — sets up a compelling window for development. 

Office: A Market of Distinctions 

Entering Q2 2026, office is showing signs of sustained recovery – investment transaction volume climbed 40.3% year-over-year through 2025 (CRE Daily). With the construction pipeline near a decade low, quality space is becoming more valuable to tenants who have made clear they want the best or nothing at all. 

Approximately 17% of office mortgage balances mature in 2026 (MBA CRE Loan Maturity Volumes), and a meaningful portion of that involves assets with structural leasing challenges that financing alone cannot solve. Office-to-residential conversion has become a real exit path in certain markets, enabled by repricing and local policy support. 

Our $30.8M acquisition bridge loan on Uptown Tower in Dallas reflects how we approach office today — backing a well-located asset with a credible sponsor and a clear plan. We are selective, but we are not on the sidelines. 

Why Sponsors Work With HALL Structured Finance 

HALL Structured Finance has been providing entrepreneurial debt capital to commercial real estate projects since 1995. As part of HALL Group, we bring more than 50 years of ownership, management, and development experience to every deal — meaning we understand projects from both sides of the table. 

We focus specifically on opportunities that are underserved by institutional capital. We operate with fully discretionary capital, which allows us to move quickly and structure financing around the real-world needs of each project — not a standard lending template. For sponsors who need a partner that is flexible, relationship-driven, and deeply familiar with the assets we finance, that distinction matters. 

With $875 billion in commercial mortgages maturing in 2026 the lending environment is active and the opportunity set is meaningful. If you have a project in need of creative financing, our team is ready to structure a solution that works. Contact us today.