Where Opportunistic Investment Is Finding Deals in 2026
Commercial Observer reported that market dislocation, rising interest rates, and the winding down of extend-and-pretend strategies are creating a widened window for opportunistic investment in commercial real estate, with private credit and equity players finding compelling entry points across construction lending, distressed assets, and office-to-residential conversions. Josh Zegen, managing principal and co-founder of Madison Realty Capital, noted that disconnects among valuations, business plans, construction costs, and operating realities have created more complex financing needs across the market. Industry participants broadly agree that disciplined underwriting, experienced sponsorship, and the ability to move quickly will define which lenders and investors are best positioned to capitalize as the cycle continues to turn heading into 2027.
