Impact Growth Capital Newsletter

 This week at IGC:
What the Data Is Telling Us About 2026

Impact Growth Fund

Join Us In Solving The Affordable Housing Crisis

Own a Piece of the GP — Not Just the Fund 

For the first time, accredited investors can access General Partner economics — including a share of management fees, promote, and equity. This insider structure is typically reserved for founding partners and offers revenue-based participation. A rare, strategic opportunity to own a piece of the GP is now open.

Click here to learn more from a previous newsletter.

Lending Climate & Capital Markets

A Reset Market Begins to Offer a Clearer Path Forward

After the volatility of the past few years, commercial real estate is entering 2026 with something the market has been searching for: clarity.

2025 was a reset year. Costs stayed high, capital pulled back, transactions slowed, and pricing corrected. Underwriting discipline returned not because people wanted it to, but because the market demanded it. That correction wasn’t comfortable, but it was necessary.

From where I sit, we’re no longer in freefall or frenzy. We’re in a transition from correction to conviction.

A more grounded market

Economic growth slowed in 2025, but easing interest rates are starting to unlock sidelined capital. Operating costs remain elevated, yet fundamentals across multiple sectors are stabilizing. This isn’t a return to the easy-money era it’s a move toward a new equilibrium where deals are built on realistic assumptions, not optimism.

Capital didn’t leave it got selective

Capital is moving again, but it’s more discerning. Pricing resets have created clarity, lenders are re-entering with tighter parameters, and transaction volume is slowly picking up. What I’m seeing is capital flowing toward strong sponsorship, durable demand, and operators who can execute not stories or speculation.

Office is smaller, but stronger

Office isn’t dead it’s being refined. New construction is at multi-decade lows, and tenants are consolidating into higher-quality buildings. Vacancy is expected to trend below 18%, driven by demand for better space rather than more space. The message is clear: quality wins, and weaker assets will continue to get left behind.

Industrial remains structurally supported

Industrial supply has pulled back sharply since 2022, while demand continues to be driven by reshoring, manufacturing growth, and data infrastructure. As new deliveries slow, the market tightens. This is a sector where long-term fundamentals still matter more than short-term cycles.

Retail continues to adapt

Retail hasn’t disappeared it’s evolved. Smaller footprints, mixed-use integration, and experiential formats are gaining traction. At the same time, tariffs and rising input costs remain real risks, particularly if they pressure consumer spending. In this environment, execution and location matter more than ever.

Multifamily is normalizing

After years of outsized growth, multifamily is working through a wave of new supply. Rent growth has cooled, and capital is becoming more selective. I still believe in the asset class but in 2026, the winners will be operators focused on affordability, operations, and long-term demand, not just headline growth.

Data centers face real constraints

Data centers were the breakout story of 2025, with many markets fully pre-leased. But power availability, infrastructure limitations, and community resistance are beginning to slow future development. Not every project moves forward and that constraint may ultimately strengthen the assets that do.

REITs may regain momentum

After lagging in 2025, REITs could benefit from narrowing valuation gaps, M&A activity, and scale-driven efficiencies. As AI and operational optimization improve margins, public markets may start to reprice these platforms more favorably.

The IGC Takeaway

Exploring Opportunities in a More Disciplined Market

If you’d like to discuss how Impact Growth Capital is navigating today’s lending climate and identifying durable opportunities into 2026, we invite you to connect with our team.