Lenders have gained more confidence in collateral values, although challenges remain in distressed property sectors.

JLL finds that projects with hospitality-style features cost far more than baseline renovations, while even simple refreshes face rising prices.

New deliveries are expected to fall sharply, but operating results from major REITs show that improvement remains uneven.

Still, vacancy is only expected to see a small uptick after falling to near record lows last year.