Leaders in the commercial real estate sector are showing slightly less optimism about their revenue and expense projections over the next 12 to 18 months. However, the majority still expect these metrics to improve by year-end, according to Deloitte’s 2026 CRE Outlook Survey.
Survey respondents indicated plans to increase spending on operations, office space and technology. While more respondents anticipate keeping spending levels steady, 68% expect expenses to rise in the coming year.
Despite ongoing macroeconomic uncertainties, many respondents remain confident in the recovery of CRE fundamentals—such as rental rates, leasing activity, vacancy rates and the cost of capital—through 2026. This reflects the understanding that such fundamentals typically evolve gradually over time.
When asked about the macroeconomic risks most likely to negatively impact their financial performance over the next 12 to 18 months, respondents most frequently cited limited capital availability, elevated interest rates, high capital costs, currency volatility and changes in tax policy. Notably, concerns about cyber risk declined significantly, while concerns over employee retention increased slightly.
CRE continues to be viewed as a relatively safe investment. Nearly 75% of global respondents plan to increase their investments in real estate over the next 12 to 18 months. Key drivers include using CRE as a hedge against inflation (34%), portfolio diversification (26%), asset class stability (15%) and potential tax advantages (14%).
As of the end of June 2025, property sales activity across the Americas remained on a recovery path that began in late 2024, rising 12% year-over-year. Although inbound capital has slowed in recent quarters, the United States continues to lead as the top source of outbound global investment capital. First-quarter 2025 figures slightly exceeded the five-year average, and this momentum could accelerate in 2025 and 2026. U.S. asset managers have significant capital reserves and a new executive order could allow individual retirement accounts to invest in private markets—potentially unlocking up to $12 trillion in capital.
Asset class rankings remained relatively stable over the past year, with no category moving more than four positions. Properties tied to the digital economy—including data centers and cell towers—regained the top spot after being surpassed by the logistics and warehousing sector last year.
Suburban and downtown office spaces have seen renewed interest, rebounding after falling to seventh and tenth place, respectively, two years ago. Data centers have consistently ranked among the top two property types in four of the last five annual surveys, driven by demand outpacing supply and frequent pre-leasing before construction is complete.
Meanwhile, the industrial sector may be approaching a turning point, with leasing activity showing signs of slowing. Conversely, the office market is rebounding, as both suburban and downtown office sectors have improved in Deloitte’s property sector rankings for the second consecutive year.
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