Speaker Spotlight: JJ Weinstein of BHI

JJ Weinstein, Head of CRE and Healthcare at BHI, was featured as a speaker at Commercial Observer’s National Fall Finance Forum.

Commercial Observer: Are you confident or skeptical about the market as we close out 2025 and head into 2026?

JJ Weinstein: As we look towards the close out of 2025 and into 2026, I would characterize the underlying fundamentals of most commercial real estate classes as moderating but relatively stable, which still provides strong opportunity signals for disciplined lenders and investors.   The real estate debt capital markets are flush with liquidity and capital, which, together with the prospect of rate cuts in 2026, should provide meaningful support for real estate valuations and transaction activity in the short-to-medium term. From a lender’s perspective, the ability to diversify a loan portfolio across a broader universe of asset classes is encouraging.  Data centers have become a core asset class, a number of CBD office markets are strengthening, and retail is deep into its renaissance. All of which to say: I am cautiously optimistic about the commercial real estate market in 2026.

Which industries or asset classes had a breakout year in 2025? Which are you focused on for long-term growth?

In 2025, two asset classes clearly stood out: 1) data centers and other large-scale computer infrastructures shined from the surge in insatiable demand behind artificial-intelligence and cloud deployment; and 2) shallow-bay industrial/distribution assets have emerged as somewhat of a darling for the real estate community as investors seek to expedite and streamline logistics flexibility close to core markets.  One could argue that the latter is more of a rebranding of a well-understood asset class, but the appetite for it has grown meaningfully and it merits attention especially as inflation and factors across geopolitical trade drive an increased emphasis on tactics to better optimize each link of the chain.

We remain mindful, however, that the strongest returns will accrue to platforms and investors that combine disciplined underwriting, operational excellence and portfolio scale — not simply between chasing “hot” sectors.

How competitively bid are the deals that you’re participating in today? What does your institution bring to the table that others don’t—what’s your competitive edge?

Deal competition is extremely intense today across all banks, funds, life-companies, agencies and private credit platforms, we are seeing robust activity across many sectors. In such an environment, differentiation becomes paramount and for BHI our competitive edge rests on pillars such as:
• Speed and flexibility: We combine the responsiveness and agility normally associated with smaller lenders with the scale, sophistication, and global capabilities of a large institution—allowing us to structure deals efficiently and close quickly.
• Deep client relationships: Our clients are highly loyal, and we reciprocate that loyalty by being responsive when things don’t go exactly to plan. In markets where certainty of execution matters, this relational trust sets us apart.

What are the top tailwinds or headwinds you’re anticipating as we head into 2026? What is going to drive market activity versus what is going to curb it?

I’d say that improving fundamentals across a number of asset classes, especially a resurgence in sectors that were recently troubled, is expanding the universe of finance-able collateral for the banking sector.  Additionally, the slowdown in new construction over the past couple of years will also benefit several of our projects that successfully navigated that cycle and are nearing completion and ready to hit the market. On the other side of the equation the sheer amount of debt capital chasing real estate deals is more of a headache than it is a headwind, but it figures to inevitably lead to loosened credit standards which can create issues when the real estate cycle eventually turns.  We’re confident in our due diligence process and strong relationship banking structure such that we’re not going to overextend ourselves to chase something that doesn’t align with our investment criteria.  But as market conditions soften, we will stay discerning in the batter’s box looking for strikes and not to chase anything out of the zone, so to speak.