The Market Won’t Save You

Here’s the uncomfortable truth: the market will not bail you out in 2026.

Cap rate compression is dead. That old playbook—buy, hold, sell at a lower cap—no longer works. Higher rates killed it. Income uncertainty buried it.

Now there’s only one path to profit: grow your NOI.

The math is brutal. Investors won’t underwrite exit caps below entry caps anymore. That means 100% of your return comes from operations. No market tailwind. No appreciation bonus. Just you and your P&L.

Grow Revenue Without Breaking Tenants

You need more rent. But push too hard and you’ll create vacancy.

Here’s how to thread that needle:

Renewals. Lock in market rates when leases roll. Below-market rents are money left on the table.

Percentage rent. Tie your upside to tenant success. You win when they win.

Alternative income. Parking fees. Signage rights. Pop-up leases. These add up fast.

Cut Expenses. Hard.

Revenue is only half the equation.

Insurance. Costs have exploded. When did you last shop your coverage? Do it now.

Property taxes. Values dropped in many areas. Appeal your assessment.

CAM charges. Audit for leakage. Money walks out the door when nobody’s watching.

Utilities. LED retrofits pay for themselves. Smart systems cut waste. Renegotiate your rates.

Buy Smarter

This new reality changes what you should acquire.

Skip “stabilized” deals. The seller already captured the upside. Instead, hunt for problems you can fix: below-market rents, sloppy operations, deferred maintenance dragging down income.

The messier the asset, the bigger your opportunity.

Your Next Move

Do this today:

• Audit every expense against market benchmarks
• Pick your top three cost cuts and execute
• Flag every below-market lease expiring in the next 18 months
• Build your renewal strategy now

Get our NOI Optimization Guide—a tactical checklist built for retail owners who want to manufacture value, not wait for it.

Let’s talk: (213) 880-8107 | francisco.williams@williamscap.ai | williamscapitaladvisors.com