Owners with maturing loans are trading rates near 4% for rates near 5.7%, and Newmark says the cost will weigh on property values.

Rate volatility, slower individual asset sales and policy uncertainty could cool a market that just posted its best annual price gain since late 2025.

In PwC and ULI's 2027 survey, 72.4 percent of respondents say insurance costs affect decisions in their markets, compared with 45.3 percent who name the grid as a top disruptor.

Starts dropped 64% year over year in the third quarter while net absorption hit its highest level since late 2021.