Avison Young Sees Growing Confidence in 2026 U.S. Outlook

Avison Young commercial real estate professionals look toward the new year with increasing bullishness. Nearly 70% of the 270 market experts surveyed expressed confidence in the U.S. CRE market heading into 2026, up from 51% at midyear. That’s according to the company’s 2026 U.S. Outlook, released Thursday.

“Commercial real estate is a major cornerstone of local and national economic growth – providing spaces for businesses to operate and bringing vibrancy to communities,” said Harry Klaff, principal and U.S. president, Avison Young. “As we look toward 2026, confidence and optimism are continuing to build across U.S. markets. It’s shaping up to be a year of renewed investment, sector growth opportunity, and stronger fundamentals driving a resilient landscape.”

On a sector-by-sector basis, Avison Young sums up its forecast below:

• Office – “The U.S. office sector remains bifurcated with 2026 expected to bring modest improvements, led by trophy assets and growth in major coastal markets such as Manhattan, San Francisco, and Boston.”
• Industrial – “A strong rebound is anticipated, fueled by stabilizing trade policies, declining interest rates, and major government incentives—particularly the One Big Beautiful Bill Act (OBBBA)—accelerating manufacturing demand and attracting significant investor capital.”
• Retail – “Investment activity is set to accelerate as financing conditions improve, and pricing becomes more realistic. Liquidity is returning, and strategic capital will move first, creating a high-velocity trading cycle.”
• Data Centers – “Exceptional growth momentum continues, driven by AI and advanced computing demands. Energy availability remains the biggest challenge, prompting operators to adopt alternative energy solutions and explore long-term options.”
• Healthcare – “Steady, innovation-driven growth is expected, fueled by demographic shifts and technology adoption, despite margin pressures and only modest relief from interest rate cuts.”
• Multifamily – “Persistent housing affordability challenges will drive rental demand and reshape renter demographics. Amenity-rich urban assets remain resilient, while oversupply in Sunbelt regions will require close monitoring.”
• AI/Tech – “AI-driven innovation and diversification are fueling strong growth, creating record venture capital investment and renewed demand for office real estate through 2026.”
• Life Sciences – “AI will be the primary driver of growth and disruption, influencing research processes and operational efficiency. Renewed capital formation and mid-sized tenant expansion will propel leasing activity despite oversupply challenges in major clusters.”

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