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aid press release – contact the distributor for questions.
The start of 2026 signals a shift toward a real‑estate rebound, echoing the early months of 2025 and 2024. While 2025 was marked by volatile sentiment, actual economic data have been steadier, and capital markets have shown notable improvement.
According to LaSalle Investment Management’s North America chapter of the ISA Outlook 2026, the U.S. and Canadian markets are beginning a new cycle. Valuations are stabilizing, debt‑market liquidity is improving, and new‑development activity has sharply declined. These factors, combined with a more reliable link between transaction prices and valuations, suggest a more favorable environment for property investment.
Key dynamics are changing: economic performance in both countries has been steadier than expectations, interest‑rate cuts arrived late in the year, and institutional investors and lenders are re‑engaging after a prolonged slowdown. Construction pipelines remain subdued, reinforcing the emerging cycle.
The report cautions that while some elements feel familiar, past patterns do not guarantee future outcomes. It offers guidance for investors navigating today’s landscape and preparing for the next growth phase, shaped by macro‑economic shifts, demographic trends, and uneven sector performance.
Economic outlook: modest growth, renewed stability
The U.S. is expected to maintain slightly below‑trend growth in 2026, avoiding a recession. Job creation and consumer spending have been steady, whereas Canada faces greater headwinds, partly due to trade uncertainty.
Capital markets: debt recovers first, equity follows
Debt markets strengthened in 2025, with increased CMBS and CLO issuance, robust private‑debt inflows, and active refinancing keeping liquidity flowing despite lower transaction volumes. Borrowing spreads narrowed, reflecting growing confidence. Equity flows remain muted but show early signs of improvement; institutional investors have shed the denominator effect, appraisal metrics have stabilized, and previously raised capital is still available.
LaSalle projects a gradual uptick in transaction volume through 2026‑27 as borrowing costs fall and confidence rises. A weaker Canadian dollar is expected to draw more foreign capital into Canadian real estate.
