As the commercial real estate environment settles in after a tumultuous 2025, investors can expect a year of outcomes driven less by prediction and more by realistic, selective strategies. With interest rates still high, core real estate strategies are unfavored, while opportunistic approaches may be more lucrative in the long run. Matt Malone, head of investment management at Opto Investments, discussed the subject with Elise Mackanych, associate editor with Institutional Real Estate, Inc. (parent company of this magazine).
What is your outlook for CRE investment in 2026?
From a strategy perspective, 2026 favors flexibility. Core real estate as a passive income substitute is less compelling right now. Opportunistic lending and structured capital can offer attractive income with better downside protection. Selective development can provide upside for investors with higher risk tolerance and longer time horizons, assuming discipline around costs and mar
