The January 16, 2026, economic update from SVN Research indicates a period of stabilizing inflation paired with a cooling labor market. Consumer Price Index (CPI) data shows that while annual inflation remains elevated at 2.7%, core inflation—excluding food and energy—has moderated to 2.6%, its lowest level since 2021. This cooling trend is further reflected in the December jobs report, which saw a tepid gain of only 50,000 nonfarm payrolls and an unemployment rate of 4.4%. Despite this slowing momentum, futures markets remain hawkish, suggesting a low probability of immediate interest rate cuts in early 2026.
Within the commercial real estate and logistics sectors, performance remains mixed as the industry shifts toward performance-driven strategies. Logistics activity slowed at the end of 2025 due to record-high inventory depletion, pushing transportation costs to a one-year high. In the REIT market, health care and industrial sectors led annual performance with returns of 28.5% and 17.0% respectively, even as broader equity REIT indices saw more muted year-end gains. Looking forward, emerging industrial markets like Boise, ID, and Albuquerque, NM, are attracting significant new capital, while the office sector continues to adapt through structured hybrid work models and collaborative redesigns.
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