Image Source: Mortgage Professional America
In an ever-evolving landscape, mortgage brokers must stay ahead of the game, especially regarding commercial real estate. Recent insights from industry leaders highlight key sectors that brokers can’t afford to ignore as we move deeper into 2026.
The Growing Importance of the Industrial Sector
As the commercial market unfolds in Q2, Bar Mor, founder and CEO of Agora, emphasizes the significance of the **industrial sector**. Mor notes that while multifamily properties have consistently performed well, the industrial segment is gaining momentum, especially regarding investment returns. “Industrial is the one I’d keep an eye on,” Mor advised, hinting at its growing potential for brokers looking to help their clients capitalize on emerging opportunities.
Multifamily Properties: A Steady Investment
Multifamily real estate has captured the attention of many brokers, accounting for a substantial portion of capital raised in recent years. In 2025, this sector claimed 48.61% of all capital raised within the commercial real estate market, also generating a remarkable 40.31% of total investment returns. Despite its steady performance, brokers should continue to explore opportunities within this sector, particularly as housing shortages persist in various markets.
Understanding the Retail Landscape
The retail sector presents a more complicated picture. Mor highlights the existence of good deals but points out that success in this arena heavily relies on the specific market dynamics and execution strategies. “It’s much more dependent on the specific market and execution,” he stated, advising brokers to proceed with caution and selectivity when targeting retail opportunities.
The Impact of Rising Rates
Although commercial mortgage brokers often argue that swings in mortgage rates have less impact on their sector than on conventional mortgages, recent rate increases still pose challenges. Mor believes that higher rates serve as filters among potential investments, enabling stronger deals to prevail while less viable opportunities fall by the wayside. “Higher rates affect commercial a bit, but not in a dramatic way,” he noted, reminding brokers that while the market is moving, it is becoming increasingly selective.
Refinancing in a Complex Environment
Refinancing can become tricky in the commercial real estate sector due to large transactional sums and the implications of raised rates. “Refinancing is probably where you feel it the most,” Mor explained. With many deals reaching the repayment stage, brokers must navigate these complexities to ensure their clients maintain favorable terms.
Infrastructure: A Sector to Watch
Another sector poised for growth is **infrastructure**. Although it accounted for just 0.13% of total capital raised in 2025, increasing demand for AI and data centers is likely to drive renewed investment. Brokers should keep a keen eye on infrastructure-related projects as they could offer lucrative opportunities in the coming months.
In summary, as mortgage brokers look toward Q2 of 2026, they should prioritize efforts in the industrial sector while maintaining a strong presence in multifamily properties. The retail sector requires careful consideration, and the infrastructure market is worth monitoring for future investment potential. Staying informed about these trends is crucial for brokers aiming to capitalize on growth in commercial real estate.
Frequently Asked Questions
What are the key sectors for mortgage brokers to focus on in 2026?
The industrial and multifamily sectors are expected to show strong performance, while brokers should approach retail with caution.
How do rising interest rates affect commercial real estate?
Rising rates serve as a filter, emphasizing stronger deals while potentially sidelining weaker opportunities. However, the overall market continues to move.
What trends should brokers watch in infrastructure investment?
Brokers should observe the increasing demand for data centers and power infrastructure, as these trends suggest significant growth opportunities.
Why is the retail sector more complex?
Success in the retail sector is highly dependent on specific market dynamics and execution strategies, making it essential for brokers to be selective.
What should brokers consider when refinancing commercial properties?
Brokers need to be aware of the complexities involved in refinancing, especially with the larger sums typically associated with commercial deals and the impacts of raised rates.
