The commercial real estate market is experiencing a fundamental shift. After years of dislocation, we're seeing signs of stabilization, but this recovery looks different from past cycles. In a recent Peachtree Point of View conversation, Peachtree Group CEO Greg Friedman spoke with Aaron Jodka, Director of Research for U.S. Capital Markets at Colliers. In this episode, Aaron offered valuable insights into where the market is heading and what it means for investors.
A Market in Rebalancing
Aaron describes the current environment as one of rebalancing rather than rapid recovery. "I feel that the state of the commercial real estate markets are in a state of rebalancing, where we're seeing improving signs of fundamentals across most asset classes," he explains. Unlike the post-financial crisis period, when aggressive Fed intervention created a V-shaped recovery, today's environment is characterized by measured growth without the same liquidity backstop.
This matters for investors who may be expecting quick value appreciation. "It shouldn't be a V shape," Aaron cautions. "I wouldn't expect that all of a sudden we're off 10%, 15% value growth in a short period of time. It's going to be a slow and steady climb because the environment and backdrop is different today than it was coming out of the global financial crisis."
The Private Credit Opportunity
For investors seeking current income and downside protection, private credit continues to offer compelling risk-adjusted returns. Aaron notes that private credit has been "one of the driving forces in commercial real estate for the last 15 years, if not longer," filling the void left by regulated banks pulling back from real estate lending.
The sustainability of private credit as an investment strategy is backed by structural advantages. Real estate-backed loans provide stability that corporate debt cannot match, with values that don't adjust overnight and assets that generate consistent cash flow. Insurance companies have significantly increased their allocations to private credit precisely because it aligns with their long-term liabilities and income requirements.
When asked about the relative attractiveness of debt versus equity, Aaron's response should interest investors evaluating their allocations: "I think we're still in a period where private credit is still on a risk reward benefit outweighing equity. But I think that pendulum is starting to swing where that equity investment is starting to look really attractive."
Sector-Specific Opportunities
Not all commercial real estate sectors are positioned equally. Aaron identifies retail properties as particularly compelling: "I really like retail at the moment. We're not building very much across this country." Limited new supply combined with retailers adapting to omnichannel strategies creates favorable supply-demand dynamics.
He also sees generational opportunities in select office assets, despite negative headlines. "True main and main locations, trophy assets are doing very well," he notes, though location and basis are critical factors. Industrial and multifamily fundamentals remain sound long-term, with supply concerns diminishing. In hospitality, the lack of new construction paired with demand from affluent consumers creates attractive entry points for experienced operators.
Key Takeaways
Investors who understand market fundamentals, maintain flexibility in their capital deployment and partner with experienced operators will be best positioned to capitalize on emerging opportunities.
Listen to the full conversation on the Peachtree Point of View podcast to hear more insights from Aaron Jodka on commercial real estate market dynamics, the 10-year treasury outlook and what data points matter most heading into 2026.
“It’s a very narrow bandwidth of who these regional banks, community banks and national banks want to lend to right now. So, if private credit didn’t exist, I think we’d be in a much more challenging environment for commercial real estate,” said Greg Friedman, managing principal and CEO of nonbank lender Peachtree Group. “We’ve seen a pickup of more opportunities coming our way where banks are unwilling to finance projects, and the regional banks in particular are really pushing borrowers to pay them off, and that’s forcing the borrower to seek other sources of capital.”
Interested in how private credit is stepping up amid market volatility and shifting CRE dynamics?
Read the full article here to see our CEO’s take on the evolving lending landscape and what it means for the future of real estate finance.
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AltsWire - Since January, volatility in Washington has added new layers of complexity to the investment landscape. Once buoyed by resilient consumer spending and AI-driven optimism, equity markets have stumbled as investors weighed the risk of disrupted supply chains, higher costs, and slower global growth.
Yet amid this turbulence, bonds have quietly returned to form, resuming their traditional role as portfolio ballast. U.S. Treasurys and high-grade corporates have attracted meaningful inflows amid signs of a cooling labor market and slowing economy, which had reignited rate cut expectations.
However, recent volatility in longer-term yields – despite expectations for the Federal Reserve to cut rates by up to 100 basis points this year – underscores the importance of active duration management. In this environment, with a backdrop of geopolitical tensions and unpredictable trade dynamics, traditional bonds alone may not offer sufficient protection or return.
Private credit – especially strategies focused on senior secured lending, real estate credit or asset-backed deals – is proving to be a powerful complement to traditional fixed income. These investments typically deliver high, consistent cash flow, often in the 8% to 12% range, allowing portfolios to generate meaningful income while materially shortening duration.
In the latest episode of Peachtree's Point of View podcast, CEO Greg Friedman sits down with Michael Parise, attorney and Chief Compliance Officer of Copper Beech Financial Group, to discuss one of the most over looked tax-efficient investment strategies available to high-net-worth investors: Private Placement Life Insurance (PPLI).
As Michael aptly puts it, "It's not what you make, it's what you keep." This philosophy drives the conversation as they explore how PPLI can help investors significantly improve their net composite return—the actual return after fees, taxes, and inflation.
Private Placement Life Insurance offers a compelling tax-advantaged structure similar to a Roth IRA but with additional benefits specifically tailored for accredited investors and qualified purchasers. The structure allows investments to grow tax-free, with tax-free withdrawals and loans, plus income-tax-free death benefits to beneficiaries.
What makes PPLI particularly valuable for sophisticated investors is its flexibility with alternative investments. Unlike traditional life insurance products, PPLI allows investments in alternative asset classes such as private credit, private equity, hedge funds, venture capital, and real estate—all within a tax-efficient wrapper.
For investors currently allocating capital to tax-inefficient investments like private credit or hedge funds, PPLI deserves serious consideration. The simple math is compelling: if your tax savings exceed the roughly 1% annual cost to maintain the structure, you're capturing significant additional returns that would otherwise be lost to taxation.
As Greg Friedman notes in closing, "With all the impact of higher interest rates and inflation, tax efficiency should be a big part of everyone's investment strategy to really have that compounding effect."
Want to learn more about implementing this powerful tax strategy? Listen to the full episode of Peachtree's Point of View podcast on your favorite podcast platform and follow for more insightful investment strategies that can help maximize your portfolio returns.
To reach Michael Parise or Copper Beech Financial Group visit them online at Copper Beech Financial Group.
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