Looking Ahead: How CRE Bridge & Construction Lenders Can Position for 2026

As 2025 winds down, commercial real estate lenders have a valuable chance to pause, assess, and recalibrate strategy for 2026. Across many sectors, pricing is showing signs of stabilization after a period of adjustment — a trend that can inform updated underwriting, risk thresholds, and long-term planning. 

The mid-year analysis from CBRE suggests that cap rates for U.S. commercial real estate “declined slightly” during the first half of 2025, indicating that yields may have passed their peak and prompting some optimism among investors. That shift provides a clearer foundation for lenders to reassess leverage bands, spreads, and return expectations for new deals in 2026 — especially in sectors and locations showing resilience. 

On the development side, cost dynamics remain relevant. According to data from Associated Builders and Contractors (ABC), nonresidential construction input prices rose 3.8% year-over-year as of late 2025. For active construction and bridge loans, rising input costs — even modest ones — underscore the need to re-examine hard cost budgets, contingency reserves, and draw structures before extending new financing or committing additional capital. 

The broader CRE landscape continues to evolve. As capital markets gain some stability, demand in certain sectors — like industrial and select modern office or mixed-use properties — has held up better than older, commoditized assets, especially in markets benefiting from population and business migration. This creates a compelling backdrop for lenders looking to deploy capital selectively but strategically. 

For lenders ready to move into 2026 with clarity, the year-end should be about more than finalizing paperwork. It should be about recalibrating assumptions, stress-testing exposures, and aligning capital deployment with where demand and value are converging. With thoughtful preparation, lenders can enter the new cycle ready — not reactive. 

At HALL Structured Finance, we offer dependable execution and tailored financing solutions across commercial real estate asset classes. If you’re evaluating your capital strategy for 2026, connect with our team to discuss upcoming opportunities and how we can support your lending goals.