CRE Rebounds: 2026 Sees Stability & Growth

Commercial real estate is projected to experience a year of stability and positive momentum in 2026, emerging from pandemic-related challenges. Analysts anticipate growth across office, industrial, and retail sectors, signaling a robust market for investors. The office sector is particularly strong, with demand up 45% year-over-year, bolstered by significant leasing activity in the trophy and Class A segments driven by tech companies.

The industrial sector is on the cusp of a 'super cycle,' driven by reshoring trends and increased logistical needs. This is expected to manifest in strong leasing across key intermodal cities such as Dallas, Houston, and Kansas City. Meanwhile, retail continues to be a quiet outperformer, with Class A malls maintaining low vacancy rates and limited new construction contributing to sustained growth.

Specialty sectors like data centers, linked to the AI boom, are also expected to see continued expansion for several more years beyond 2026. The tech sector's impressive growth in 2025 is forecast to further fuel office demand into 2026, particularly for large-scale office spaces exceeding 100,000 square feet.