Commercial real estate liquidity conditions reversed in first quarter 2026, after a sustained period of improvement, according to the latest reading of the Madison Real Estate Liquidity Index (MRELI) from Madison International Realty.
The index, which measures the ease with which asset owners and investors are able to enter and exit Real Estate Limited Partnerships, reports a liquidity score of 33.4 in first quarter, down from 54.5 in the prior quarter. The decline ends a two-year streak of consecutive quarterly gains and represents the index’s first setback since early 2024.
The pullback was driven by heightened geopolitical tensions, leading to weakness across several key indicators. Public market data points, including elevated volatility and softening REIT share performance, weighed on the index during the quarter. Primary market deal volume also cooled from the robust pace observed in fourth quarter 2025. The decline was broad-based, reflected in both th
