Commercial real estate companies across global markets are entering 2026 with renewed confidence, driven by stabilising capital conditions, evolving asset preferences, and a gradual recalibration of risk appetite after several volatile years. A new international industry outlook indicates that a strong majority of firms expect revenues to rise over the coming year, underlining a cautious but broad-based recovery in the sector.
The study, based on responses from large commercial real estate owners and operators across Europe, North America, and Asia-Pacific, shows that more than four out of five companies anticipate revenue growth in 2026. While this optimism is marginally lower than the previous year, it remains significantly above pre-pandemic averages, reflecting adaptation to higher interest rates and shifting tenant behaviour rather than a return to speculative expansion. At the same time, cost pressures have not eased entirely. Over two-thirds of respondents expect operating expenses to increase, pointing to continued challenges from financing costs, compliance requirements, and workforce retention. Despite this, investment intent remains resilient, with nearly three-quarters of firms planning to deploy additional capital into real estate assets over the next twelve months. Industry analysts say this dual trend of rising revenues and higher expenses suggests a sector that is repositioning rather than retreating. Inflation hedging, portfolio diversification, and regulatory-driven asset reallocation are emerging as the dominant motivations behind new investments, replacing the yield-chasing strategies that characterised earlier cycles. Regional sentiment, however, varies sharply. European commercial real estate companies display the strongest optimism, with a clear majority expecting improvements in leasing activity, access to finance, and capital market participation.
This confidence is closely linked to anticipated public infrastructure investment, urban regeneration programmes, and a gradual easing of inflationary pressures across key European cities. In contrast, Asia-Pacific respondents adopt a more guarded outlook. While most still expect market conditions to improve, concerns persist around capital availability and global trade dynamics, particularly in export-dependent economies. North American firms, meanwhile, signal a largely neutral stance, anticipating stability rather than acceleration in rents, vacancy levels, and financing conditions. Across regions, capital access has emerged as the single most influential macroeconomic factor shaping business performance in 2026, overtaking concerns such as cyber risk, which has dropped sharply in priority. Notably, workforce retention has climbed the risk agenda, reflecting talent shortages in asset management, sustainability compliance, and technology integration. Asset preferences are also evolving. Properties aligned with the digital economy including data infrastructure and network-dependent assets have regained prominence, followed closely by logistics and warehousing. Traditional office assets, both central and suburban, are showing signs of selective recovery as occupiers recalibrate space needs around hybrid work models rather than abandoning physical workplaces altogether. Interestingly, enthusiasm around artificial intelligence adoption has moderated. While AI remains part of long-term strategy, many firms report early-stage deployment challenges, highlighting a shift from experimentation to practical integration.
Urban planners and real estate strategists view these signals as indicative of a maturing commercial real estate cycle one shaped less by rapid expansion and more by resilience, asset quality, and alignment with infrastructure-led urban growth. As cities invest in connectivity, climate resilience, and digital infrastructure, commercial real estate appears poised to follow a steadier, more disciplined growth path in 2026.
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