Hi, I’m Rene with Clarion’s 2Q 2026 Dashboard — a quick snapshot of the private real estate capital markets.
This quarter, we continue to see encouraging signs across several key indicators, with private real estate delivering eight consecutive quarters of positive returns.
Importantly, private real estate valuations are also showing signs of improvement. Capital appreciation has been modestly positive in four of the last five quarters, signaling that property values are beginning to recover following the market correction.
Turning to debt markets, borrowing spreads have remained stable despite geopolitical uncertainty, while liquidity remains robust. With debt spreads down roughly 450 basis points from their prior peak, available financing is becoming more accretive to asset-level returns.
Transaction activity is also improving. Quarterly U.S. real estate transaction volume has recently returned to its long-term average, supported by industrial and residential deal flow.
And finally, new construction remains constrained. Higher construction and financing costs, slower rent growth, and higher required yields have driven a sharp decline in new starts, particularly across residential and industrial properties.
Taken together, these five indicators point to continued improvement in private real estate capital markets.
At Clarion, we’re keeping a close eye on these trends to help guide strategic investment decisions.
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