The economy is moderating but steady, with slower GDP growth, 2.4% inflation, and a data-dependent Fed. Consumer sentiment is improving and AI investment is driving growth. In commercial real estate, industrial leads, apartments are stabilizing, retail is steady, and office performance remains split between suburban and CBD, amid ongoing housing affordability and policy debates.

Stronger job growth and improving logistics signal resilience, while flat retail sales and fewer job openings point to caution. In commercial real estate, office delinquencies hit a record high as industrial and lodging improve, with migration and foreclosure trends shaping the 2026 outlook.