Targeted Strategies for Evolving Real Estate Demand

This technical report discusses the current state and outlook of commercial real estate as of January 2026. It outlines the stagnant growth observed in 2025, with global value growth reaching only 1.5% due to persistent inflation and high interest rates. The report highlights the shift in market dynamics as supportive fiscal and monetary policies are expected to foster growth in 2026. It details how excess supply pressures, particularly in the U.S., are influencing rent growth and occupier decision-making. The report emphasizes the need for targeted investment strategies that account for structural changes in demand, including demographic shifts and supply chain realignment. It also notes the importance of adapting to rising geopolitical risks and the necessity for a flexible investment approach. The report concludes by summarizing expected trends in capital markets, including increased transaction activity driven by motivated sellers and improved debt availability, which may lead to a rebound in valuations.