Economic Conditions

KeyBank’s latest Middle Market Sentiment Survey polled 750 owners and senior executives in November and December 2025. The results point to a middle market entering 2026 on the front foot. Company outlooks are strong, driven by tighter operations, upgraded technology, and steadier teams.

As part of its mission-driven focus to Native America, KeyBank Native American Financial Services strives to remain on the forefront when it comes to the ever-evolving topic of Section 105(l) leases.

Commercial real estate investors have a lot to look forward to in 2026. As we begin the new year, the bid-ask spread on commercial real estate properties has narrowed, lenders are increasingly coming to the table to restructure challenged deals, and fundamentals are improving. Experts were encouraged by these emerging characteristics during a capital markets panel at the recent Bisnow East Commercial Real Estate Conference in Maryland.

The country is undeniably experiencing an affordable housing shortage. The National Low-Income Housing Coalition estimates that the country is 7.1 million low-income units short of meeting current demand. But, increasing the affordable housing supply requires a complex capital stack, and gaps in funding can derail affordable housing projects.

As we prepare for a new year and for the commemoration of our nation’s 250th anniversary, our 2026 Market Outlook, developed by our Key Wealth Chief Investment Office team, delves into the latest research, insights, and economic data to help you navigate our nation’s evolving societal landscape, artificial intelligence, market shifts and more so you can make informed decisions and grow your portfolio.

Turbulence and volatility may have ruled the day in 2025, but 2026 is starting with the right ingredients for a potentially strong year of M&A for the middle market — companies with an enterprise value of $100 million to $1 billion. Improved economic fundamentals, the potential for lower interest rates, and a business-friendly regulatory environment are expected to help fuel activity this year — a welcome reprieve.

New survey data shows roughly half of middle market companies plan to pursue acquisitions by the end of 2025. But how are leaders timing mergers and acquisitions activity amid economic uncertainty, and what factors are most important as they prepare for growth and exit over the next three years?

The resurgence of traditional bank capital has not only provided more debt capital availability, borrowers see more favorable terms on both investment deals and new construction loans.