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**Avison Young Sees Growing Confidence in U.S. CRE Market Heading Into 2026**
Avison Young commercial real estate professionals are entering the new year with growing optimism. According to the company’s newly released 2026 U.S. Outlook, nearly 70% of the 270 market experts surveyed expressed confidence in the U.S. commercial real estate (CRE) market as it looks toward 2026—an increase from 51% at midyear.
“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 of 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.”
The report offers sector-specific forecasts that highlight key trends and developments expected to shape the CRE landscape through 2026:
**Office**
The U.S. office sector remains bifurcated, with modest improvements expected in 2026. Growth will be led by trophy assets, particularly in major coastal markets such as Manhattan, San Francisco, and Boston.
**Industrial**
A strong rebound is anticipated, supported by stabilizing trade policies, declining interest rates, and major government incentives—most notably the “One Big Beautiful Bill Act” (OBBBA), which is spurring manufacturing demand and drawing substantial investor capital.
**Retail**
Investment activity is expected to accelerate as financing conditions improve and pricing becomes more realistic. Liquidity is returning to the market, and strategic capital is anticipated to lead the way, resulting in a high-velocity trading cycle.
**Data Centers**
Growth in this sector remains exceptional, propelled by the expanding demand for AI and advanced computing infrastructure. However, energy availability is a key constraint, pushing operators to explore alternative energy solutions and long-term strategies for sustainability.
**Healthcare**
The healthcare sector is on a path of steady, innovation-driven growth. Demographic shifts and technological adoption are key drivers, though the industry continues to face margin pressure and only modest benefits from anticipated interest rate cuts.
**Multifamily**
Persistent housing affordability challenges are expected to enhance rental demand and reshape the demographic makeup of renters. Urban multifamily properties with premium amenities remain resilient, while oversupply concerns in Sunbelt markets will require careful oversight.
**AI/Tech**
AI-led innovation is driving substantial sector diversification with record levels of venture capital investment. This surge in tech development is also expected to boost office real estate demand through 2026.
**Life Sciences**
Artificial intelligence is set to play a transformative role—impacting everything from research activities to operational efficiency. Although some major life sciences clusters are facing oversupply issues, renewed capital formation and expansion among mid-sized tenants are projected to sustain leasing momentum.
Overall, Avison Young’s 2026 outlook signals a rebound in confidence across the nation’s commercial real estate markets, driven by evolving economic dynamics, technological advancements, and increased investor activity.
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