The CRE Finance Council (CREFC) said Monday its Second-Quarter 2026 (2Q26) Board of Governors (BOG) Sentiment Index rose 0.9% to 101.0 from 100.1 in the previous quarter, holding near the survey’s 2017 baseline of 100.0 after the prior quarter’s 20.2% decline. However, Beneath the modest headline move, results were mixed. Five of nine core questions improved – led by the economic outlook – while four softened, led by borrower and investor demand, which moderated from 1Q26’s elevated readings.

Conducted between June 25 and July 6, the survey captured a market stabilizing after the geopolitical shock that drove last quarter’s decline, but stabilizing into caution rather than conviction. “After last quarter’s shock, this is what a market catching its breath looks like,” said Lisa Pendergast, president and CEO of CREFC.

Neutral was the most common answer on seven of the nine core questions. For example, 58% of respondents now expect the U.S. economy to perform at the same level over the next 12 months, while 24% expect worse performance, down from 54% in the previous survey. Views on interest rates remained the weakest reading for a second consecutive quarter.

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