CRE predictions 2026: 10 insights industry leaders agree will shape the year ahead.

In BE News’ 26 for ’26 series, built environment leaders were asked to sum up 2025 in one word – and share their hopes, fears and expectations for 2026. Part four alone is packed with signals for anyone shaping a CRE strategy this year.

Below is a curated roundup of the biggest CRE predictions (insights) for 2026 from the contributors featured – and what they mean for landlords and flexible workspace operators, from smaller players through to enterprise portfolios.

1) Confidence is returning – but it’s concentrated at the top end.

James Lowery (CEO, essensys) summed up 2025 as “polarisation” – and it’s a useful lens for 2026 too. He points to record rents in high-quality space as a sign that the “paralysis of the last few years is easing”.

That echoes broader research that expects improving market activity in 2026, but with caution still in the system.

What it means: quality is still winning, but “good” is no longer good enough. If your proposition sits in the middle, you need a sharper differentiator.

 

2) “Optimise what you’ve got” beats “expand at all costs”.

A clear real estate prediction for 2026: operators and landlords are shifting from rapid growth to portfolio performance.

Lowery describes a year where the focus is “optimising existing portfolios”, improving how spaces are used, and running buildings more efficiently – with expansion continuing, but less as the headline strategy. 2026 is about optimisation — and that requires real space intelligence across your portfolio.

What it means: utilisation, operational efficiency, and experience become board-level metrics – not just ops concerns.

 

3) Data-led decision making becomes the new baseline.

Lowery calls out an “innovation leap” driven by understanding how people actually use space – using data to improve customer experience and differentiate.

Across CRE, this shows up as a broader demand for proof and measurable outcomes (not more dashboards).

For operators and landlords: it’s the year to move from “we think” to “we know”. That’s exactly where WiFi-derived space intelligence can be powerful – because it turns everyday occupancy behaviour into actionable insight, without adding sensors.

 

4) The flight to quality continues – and regions feel the pinch.

Remi Smith (Avison Young) highlights continued preference for better quality space, a constrained pipeline, and ESG sitting at the core of decision-making – with a very real concern about dwindling Grade A supply in regional cities.

What it means: if you can’t outspend the market on fit-out, you’ll need to out-operate it: smoother experience, better utilisation, clearer proof of value.

 

5) Retrofit, repurpose, and “make the asset work harder”.

Several contributors point to repurposing existing buildings, modular design, and retrofit-first thinking as central themes.

What it means: the winners will treat operational data as part of the redevelopment plan – using real usage patterns to justify (and de-risk) investment.

 

6) Viability and cost pressure shape what gets built – and what doesn’t.

Chris Bolland (Brock Carmichael Architects) and Alex Uregian (City Sanctuary) both put viability front and centre. Others cite ongoing pressures from taxes, wages, NIC, and regulation.

What it means: expect a more selective market. Projects that progress will need tighter underwriting and a clearer plan to drive performance once operational.

 

7) Tenant expectations rise – and landlords have to respond.

Roy Shaby (Tradestars) predicts landlords will be “far more conscious of the needs of their tenants” – and that owners must “purpose and programme their buildings accordingly”.

Dr Peggie Rothe (Leesman) also expects the hybrid debate to shift from whether it works to how well it works – with employee experience and culture as strategic priorities.

What it means: experience isn’t fluff. It’s leasing velocity, retention, and pricing power – and ultimately your digital experience across every site.

 

8) AI is everywhere – but outcomes matter more than hype.

AI shows up repeatedly (from estate agency search disruption to operational use cases).

The thread worth paying attention to: AI is moving from novelty to embedded operations – and buyers will demand proof.

What it means: use AI where it reduces friction and improves decision-making. Don’t add complexity.

 

9) Regulation and safety will keep reshaping priorities.

From building safety and regulation maturity, to growing focus on risk and safety in public places, regulation continues to drive timelines and investment decisions.

What it means: resilience is becoming a differentiator – not just compliance.

 

10) The biggest risk for 2026: mediocrity.

Lowery’s “fear is mediocrity” – a market that keeps taking safe steps and drifts into a generic middle.

That’s a useful provocation for every operator and landlord planning 2026: what are you doing that’s meaningfully different – and measurable?

 

Key takeaways for your 2026 CRE strategy.

• Quality demand is real, but differentiation is what sustains it.

• 2026 is about optimisation: space performance, experience, and efficiency.

• Data-led operations will separate leaders from the middle market.

 

Want to act on these 2026 real estate insights? Chat to our experts and book a personalised demo to see how essensys Platform and elumo combine intelligence and execution to elevate digital experience and unlock measurable growth.

 

Contributors also included leaders from Avison Young, Darin Partners, Thriving Investments, and others across the UK built environment.