CRE Signals Turn Constructive: What Appraisers Need to Watch
In this issue:
- CRE Activity Rebounds as Credit Pressures Ease
- New Affinity Partner Benefit — GraftPage
- Trending Topics Thursdays — Fannie Mae CU® Policy Update
- Advocacy, Education, and Community Updates
Insights
CRE Activity Rebounds as Credit Pressures Ease — A Barometer for Appraisers
Early 2026 is delivering mixed but encouraging signals for commercial appraisal activity. LightBox’s January CRE Activity Index surged 28% to 110.7, returning to triple digits for the first time since October and reflecting stronger listing, appraisal and environmental review volume. Separate LightBox transaction data recorded 1,163 deals totaling $24.1 billion in January, suggesting investors remain active across property types even as markets adjust to higher borrowing costs. The jump suggests improving deal flow and renewed underwriting activity to start the year, though recent market volatility could temper momentum if borrowing costs remain elevated.
At the same time, Trepp’s latest CMBS Special Servicing data shows modest stabilization in credit performance. The overall CMBS special servicing rate declined 15 basis points in December to 10.71%, down from 10.86% in November. Office and lodging led the improvement, with office falling to 16.64% and lodging to 9.48%. However, performance remains uneven: retail rose to 11.99% and mixed-use climbed to 13.97%, underscoring continued sector-specific stress.
Notably, $1.9 billion in loans transferred to special servicing in December alone, highlighting ongoing refinancing and maturity challenges even as overall servicing rates tick lower.
For appraisers, these indicators function as a market barometer. Rising transaction and underwriting activity points to increased engagement and valuation assignments. Meanwhile, elevated special servicing rates, particularly in office and retail, signal continued demand for valuations tied to workouts, extensions, refinancing, and risk monitoring.
The takeaway: CRE markets appear to be stabilizing, but the pace of recovery will likely depend on interest rates and broader financial market stability. As capital cautiously re-enters the market and lenders continue managing legacy exposures, commercial appraisers remain central to both renewed deal velocity and credit oversight in 2026.
Your Benefits
GraftPage is a new Affinity Partner of the Appraisal Institute, offering appraisers the ability to automate report addenda compilation. Developed by an MAI appraiser, GraftPage lets you browse resource documents and insert high-resolution page images into Microsoft Word reports in seconds.
- Handles up to eight file types, including Word, RTF, Excel, PowerPoint, PDF, TIFF, PNG, and JPEG
- Process multiple documents simultaneously
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- Preserves page orientations
- Allows for margin cropping to custom dimensions
- Offers autocropping for Word and digitally created PDF documents
- Self-contained software - no registry footprint
- No temporary image storage
- Tremendous time savings
- Exclusive discount up to 50% for AI members and candidates.
Use AI202650 at checkout.
Trending Topics Thursdays:
Sign up for our next free webinar
Collateral Underwriter and AMCs: Policy Update and Industry Considerations
March 12, 2026, 11 am CT
Fannie Mae recently announced an update to its collateral risk management framework that expands Collateral Underwriter® (CU®) access to appraisal management companies (AMCs), with the stated goal of improving transparency and alignment in the appraisal review process by enabling lenders and AMCs to work from a shared view of collateral risk. While the change is intended to support earlier issue identification and greater consistency in appraisal quality control, it has also raised concerns among some appraisers about how collateral risk insights may be interpreted and applied. This educational webinar will provide context on the policy change, outline its intended objectives, and address common questions and concerns raised across the valuation community.
Speaker: Justin Alexander, Director of Collateral Strategy and Innovation, Fannie Mae
Land Trust Valuation Developments and Trends
March 19, 2026, 11 am CT
This free, public webinar examines current developments and emerging trends in land trust and conservation‑related valuation work. The session highlights opportunities for appraisers to collaborate with land trusts and provides updates on federal tax law and recent case law affecting conservation easement valuations.
Speakers:
- Rex Linville, Eastern Division Director of Field Programs, Land Trust Alliance
- Diana Norris, Associate Director, Conservation Defense, Land Trust Alliance
March 19, 2026, 11 am CT
AI Blog
Artificial intelligence is becoming part of the professional landscape appraisers operate within, but according to business strategist and 2026 Annual Conference keynote speaker Verl Workman, the real opportunity isn’t about chasing new tools. It’s about strengthening the human expertise, structured systems, and leadership that technology cannot replace. In this conversation with the Appraisal Institute, Workman discusses how appraisers can remain indispensable in an AI-enhanced profession by focusing on analytical reasoning, disciplined workflows, and proactive client relationships, while using AI to challenge assumptions, strengthen conclusions, and support more defensible valuation analysis.
Advocacy Updates
Legislative Day Registration Open!
Registration is now open for the second annual Appraisal Institute Legislative Day, which will be held May 20–21, 2026, in Washington, DC.
This is an opportunity for appraisers from across the country to help shape the future of the profession by engaging directly in grassroots advocacy on Capitol Hill—Your Voice. Your Advocacy. Your Impact.
Legislative Day will feature a dynamic day and a half of policy education, grassroots advocacy, and unparalleled networking opportunities. During Legislative Day, you’ll have the opportunity to:
- Engage directly with Capitol Hill staff on critical public policy issues affecting appraisers
- Hear directly from guest speakers, including Members of Congress, on key housing finance and regulatory issues
- Network with peers from across the country and build lasting professional connections
Join us in Washington, DC, and make your voice heard!
Final Week: One Last Push in the AI PAC Chapter Challenge
We’re entering the final week of the AI PAC Chapter Challenge, and there’s still time to make an impact.
While reaching our ambitious overall goal may be a stretch at this point, the Challenge has already accomplished something important: sparking engagement and building momentum for the future of AI PAC.
In the past week, we’ve seen encouraging activity from several chapters, including Western Pennsylvania and the Wyoming, North Dakota, and South Dakota Chapters, demonstrating that momentum can build quickly when members step forward.
Meanwhile, the Tennessee Chapter continues to lead the pack, setting an impressive pace throughout the Challenge and showing what’s possible when members rally behind advocacy efforts.
As we close out the final week, every contribution still matters. Whether it’s your first gift or an additional show of support, your participation helps strengthen AI PAC and the Appraisal Institute’s voice in Washington.
Let’s finish strong!
Member Moves and Media
Becci Curry, MAI, and Eric Durden, MAI Named to Lead JLL’s U.S. Value & Risk Advisory
JLL announced the appointments of Becci Curry, MAI, as Global Head of Strategy, Quality Management & Institutional Lead and Eric Durden as U.S. Head of Value & Risk Advisory, strengthening the firm’s leadership as demand grows for integrated valuation and advisory services. Read the Announcement
Vytas Norusis, MAI, Releases Industrial Outdoor Storage Market Outlook
Vytas Norusis, MAI, Executive Vice President at Partner Valuation Advisors, released a new report highlighting how industrial outdoor storage (IOS) has emerged as a strategic investment target, driven by e-commerce growth, supply-chain resilience, and scarce zoned land. Read the Report
Katy Black, MAI, Examines Hotel Investor Return Expectations
Katy Black, MAI, of HVS authored an article exploring how hotel discount rates and equity yield expectations have shifted over the past decade and what those changes signal for hospitality investment and valuation trends. Read the Article
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
Search the latest educational offerings! Find National and Chapter-sponsored classroom, synchronous, and online opportunities.
Your Community
Kelli Kline Mayhew, MAI, SRA, Receives the Women’s Initiative SPOTLIGHT Award
The Appraisal Institute is pleased to recognize Kelli Kline Mayhew, MAI, SRA, as a recipient of the Women’s Initiative SPOTLIGHT Award, which honors individuals who demonstrate leadership, mentorship, and a commitment to advancing women in the appraisal profession.
A 30-year veteran of the industry, Mayhew founded Mayhew Group, LLC, in 1999. The firm serves the southeastern United States, providing commercial real estate valuation, market studies, feasibility analysis, consultation, and appraisal review services. She specializes in valuation and consulting for litigation purposes and has worked extensively on cases involving real estate throughout North and South Carolina.
Mayhew has also contributed significant leadership to the profession. She currently serves as Third Director representing Region V on the Appraisal Institute’s national Board of Directors and recently served as 2025 President of the North Carolina Chapter and 2024 Chair of the Appraisal Institute Education and Relief Foundation Board of Directors. She is also an instructor for the Appraisal Institute, a mentor for the national Women’s Initiative Network Committee, and a contributor to Valuation Insights & Perspectives.
Learn more about the Appraisal Institute’s National Awards here!
Until Next week
Team Appraisal Institute
