CRE Outlook 2026 reflects a slower and more uneven recovery than previously expected across the global commercial real estate sector. While earlier projections suggested that 2025 would mark a strong rebound, ongoing macroeconomic uncertainty has delayed progress. As a result, the timeline for full recovery may now extend over the next 12 to 18 months.
Trade tensions and evolving regulations have added complexity to decision-making across the industry. Consequently, many leaders are reassessing their strategies in response to shifting global conditions. Although these challenges are unlikely to ease soon, opportunities still exist for those who remain adaptable and informed about regional and asset-specific trends.
Navigating a Pause in Recovery
Insights from Deloitte’s 2026 survey highlight the key concerns shaping the industry. The study gathered responses from more than 850 executives across 13 countries, offering a broad view of how global investors and operators are adjusting to current conditions.
When evaluating financial expectations, respondents expressed slightly less optimism than in the previous year. About 83% expect revenue growth by the end of the year, compared to 88% in the earlier survey. At the same time, fewer participants plan to increase spending, while more intend to maintain current levels.
Despite this cautious approach, cost pressures remain significant. Around 68% of respondents anticipate higher expenses in the near term. This reflects ongoing inflationary pressures and the rising cost of doing business in many markets.
A similar trend is evident in expectations for core real estate fundamentals. While most respondents still anticipate improvements in rental rates, leasing activity, vacancies, and capital costs, confidence has softened slightly compared to last year. Nevertheless, growth is still projected across most asset classes and geographic regions.
Overall sentiment remains positive, even if tempered by uncertainty. The industry outlook index stands at 65, which is well above the low point seen in 2023 but slightly below last year’s peak. This suggests that confidence continues, although it is more measured.
However, several risks continue to weigh on expectations. Respondents identified capital availability, elevated interest rates, and currency volatility among the most significant threats to financial performance. In addition, concerns about changes in tax policy remain prominent.
Interestingly, concerns about cyber risk have declined compared to last year. In contrast, worries about employee retention have increased, reflecting a shifting focus toward workforce stability and talent management in a competitive environment.
