Professional real estate transaction representing investment planning and the 2026 real estate market

3 Real Estate Predictions for 2026

Exeter EMPOWER Newsletter
A Newsletter by The Exeter Group, LLC
Welcome to Exeter EMPOWER, your trusted source for expert guidance on 1031 exchanges, self-directed IRAs, self-directed individual 401(k) plans, private fund custody, directed and administrative trustee services, title holding trusts, specialty holding escrows, and custody services.
In this edition:
• Upcoming Webinar: Expert Real Estate Investment Strategies for 2026
• 3 Real Estate Predictions for 2026
• Choosing the Right Qualified Intermediary
 
Join Our Upcoming Webinar
Tuesday, March 17 | 12:00 – 1:00 PM MDT
Unravelling the Mysteries of Real Estate in IRAs and Protecting Gains through the 1031 Exchange, with a Primer on Selecting the Best Property
Join Exeter Trust Company’s Hiba Exeter and Brett Davis and Johnny Lynum, the founder of REI Genius, in a discussion about real estate investing. Learn methodologies and tools to lock in the best possible purchase and to defer taxation on gains. And hear a compelling argument for real estate as a diversifier in retirement portfolios.
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3 Real Estate Predictions for 2026
The real estate market is settling into a more balanced, if cautious, phase. As we look ahead to 2026, outcomes are likely to be shaped less by bold forecasts and more by steady execution and clear-eyed risk assessment.
1. Capital will remain selective, even if rates ease modestly
Even if interest rate volatility continues to moderate, lending standards are unlikely to loosen in a meaningful way. Debt and equity providers remain focused on cash flow durability, sponsor track record, and credible exit assumptions. Investors should plan for conservative leverage and evaluate deals based on how they perform under pressure, not under ideal conditions.
2. Asset-level operations will drive relative performance
Tenant behavior across markets suggests growing sensitivity to cost, reliability, and day-to-day service quality. Assets with consistent maintenance practices, predictable operating expenses, and resilient infrastructure are better positioned to sustain occupancy and income. Incremental operational improvements may ultimately matter more than broad market rent growth.
3. 1031 exchanges will reward flexibility more than urgency
While exchange timelines remain fixed, 2026 is likely to favor investors who preserve flexibility in asset selection and structure. As transaction volume normalizes unevenly across markets, exchangers who avoid forcing capital into marginal deals may find more attractive entry points over time. Patience, paired with readiness, will create opportunity.
Our 1031 exchange transaction volume for 2026 is already more than 20% over the prior year period.
Overall, 2026 appears less about anticipating a sharp rebound and more about navigating uncertainty with discipline, patience, and a long-term view.
 
You May Not Know This About Qualified Intermediaries
The 1031 Exchange Qualified Intermediary Industry is Not Licensed, Regulated, or Audited.
Most investors are shocked to learn that the 1031 exchange qualified intermediary industry is largely unlicensed and unregulated. Unlike regulated financial institutions, most QIs operate without mandatory audits or government oversight.
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Choosing the Right Qualified Intermediary
The sale of rental, investment, or business-use real estate is often one of the largest financial transactions an investor will undertake. When investors choose to structure their sale as a 1031 exchange to defer capital gain taxes, they entrust their net proceeds to a qualified intermediary. Most shocking for many investors is that the 1031 exchange industry is unlicensed and unregulated, with no licensing requirements or regulatory oversight in most states.
Selecting the right partner for a 1031 exchange requires rigorous and careful due diligence to ensure your funds remain safe and your tax-deferred status remains intact.
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Exeter 1031
Exeter 1031 Exchange Services, LLC
National Corporate Headquarters
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San Diego, CA 92108
(619) 239-3091
Exeter Trust
Exeter Trust Company
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Cheyenne, WY 82009
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The Exeter Group, LLC | 404 Camino del Rio South, Suite 600, San Diego, CA 92108
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