The Kansas City Market Pulse - S2/E2 - How Smart Capital Moves in CRE Market Cycles | Steven Silverman

Guest:

Steven Silverman, Friedman Real Estate

Host:

Logan Freeman, Managing Broker, Midwest CRE Advisors

In Season 2, Episode 2 of The Kansas City Market Pulse, host Logan Freeman sits down with Steven Silverman of Friedman Real Estate to talk capital strategy, market cycles and what it takes to get deals done right now.

Steven has transacted on more than $500 million of commercial real estate, over 15 million square feet nationwide, and runs a business split between traditional investment sales and auctions.

Episode Highlights:

Where We Are in the Cycle: 2024 was one of the worst years in a decade, 2025 was much better, and Steven expects 2026 to be more active, though not like the zero-rate years.
Realistic Pricing: Anchoring meets reality. Present an in-place NOI that reflects day-one taxes and insurance, where quotes are coming in 25% to 50% higher.
Calls vs. Closings: Steven estimates he has called on about $2 billion of real estate to sell $500 million. The difference is sellers willing to be realistic.
The Auction Option: For value-add and higher cap rate deals, auctions trade a little price for execution: hard contracts and 30- to 45-day closes.
Handling 1031 Buyers: Urgency cuts both ways. Ask "Are you in a 1031?" up front and know that buyers are often looking at many deals at once.

Disciplined strategy beats reactionary moves. This one is a must-listen for sponsors, sellers and brokers pricing deals in 2026.

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Key Takeaways

Steven Silverman has transacted on more than $500 million of commercial real estate, over 15 million square feet nationwide, and has averaged about $50 million a year for 10 years.
2024 was one of the worst years in a decade, 2025 was significantly better and 2026 should be more active again, though not like 2021 and 2022.
Logan notes that over $150 billion traded nationally in Q3 2025, about $600 billion annualized, and expects 2026 closer to $500 to $550 billion, with $965 billion of CRE debt needing to refinance, restructure or sell.
A seller's T12 NOI is often not the NOI a buyer will underwrite. Reassessed taxes and insurance quotes 25% to 50% higher can erase tens of thousands of dollars on day one.
Steven presents an in-place NOI with realistic future taxes and insurance at the start of every valuation conversation.
About half of Steven's business is auctions, which suit value-add and higher cap rate deals where sellers trade some price for hard contracts and 30- to 45-day closes.
On a listing, ask buyers "Are you in a 1031?" right away; 1031 urgency is real, but those buyers are often chasing many deals at once.

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Questions Answered in this Episode

What does Steven Silverman expect for CRE transaction volume in 2026?

Steven Silverman expects 2026 to be more active than 2025, which was significantly better than 2024, one of the industry's worst years in a decade. He does not expect a return to 2021 and 2022, when rates were near zero.

Why is a seller's NOI often lower once a buyer underwrites it?

Buyers reprice taxes and insurance. Insurance quotes are coming in 25% to 50% higher, and reassessed taxes can jump, so an NOI shown on a T12 can lose $30,000 to $40,000 on day one. Steven Silverman presents an in-place NOI with realistic future taxes and insurance up front.

When does a CRE auction make sense?

Auctions work well for value-add and higher cap rate properties that tend to get retraded in a traditional sale. Sellers give up a little price in exchange for execution: hard contracts and 30- to 45-day closes.

How should sellers handle 1031 exchange buyers?

Ask right away whether a buyer is in a 1031. Those buyers have urgency, but they are often identifying many properties across many markets, so a contract with a 1031 buyer can fall apart.

Where can I listen to "The Kansas City Market Pulse - S2/E2 - How Smart Capital Moves in CRE Market Cycles | Steven Silverman"?

The episode from The Kansas City Market Pulse, hosted by Logan Freeman of Midwest CRE Advisors, is on Spotify, Apple Podcasts and YouTube, and on the show page at mwcreadvisors.com.

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