As we kick off the New Year, commercial property owners have a powerful opportunity: to turn insights into strategy and early momentum into results throughout the year. After navigating several challenging years of market adjustments, industry forecasts for 2026 point toward renewed optimism and shifting fundamentals, but with nuanced dynamics across asset types.
Understand the Market Backdrop: From Resilience to Opportunity
Industry forecasts suggest the commercial real estate sector is poised for a meaningful shift heading into 2026. The U.S. market is moving “from resilience to optimism,” with capital markets opening up, debt costs easing, and leasing fundamentals stabilizing or improving after years of uncertainty. Source
Fundamentals like rental rates, vacancy levels, and capital flows are expected to improve through 2026, though macroeconomic volatility and policy uncertainty remain considerations. Source
This environment means early-year planning can pay dividends, especially for owners who align their property strategies with emerging market signals.
Evaluate Property Positioning in a Shifting Demand Landscape
While the broader outlook is positive, demand is not uniform across all asset types. High-quality, well-located assets, particularly in core sectors like multifamily, logistics, and experiential retail, continue to outperform, while older or functionally obsolete properties may face longer leasing cycles.
Trend reports also underscore how evolving tenant expectations around workspace experience and efficiency are reshaping demand. Owners focusing on modernization, ESG enhancements, and tenant-driven amenities can better position their spaces for premium interest and leasing momentum. Source
Key questions to ask now:
- Does your property reflect what today’s tenants value most?
- Are upgrades or repositioning efforts aligned with broader market trends?
- How are amenities and operational efficiencies contributing to tenant experience?
Property Feature: 3587 & 3611 E Sunset Rd – Two contiguous parcels with great commercial development potential.
Rethink Leasing Strategies to Capture Early-Year Momentum
With market visibility improving, the start of the year is an ideal time to reassess how leasing strategies are structured. Experts suggest that proactive outreach and thoughtful pricing often outperform reactive approaches — particularly in competitive markets where quality space is tightening. Source
Consider:
- Incentive structures that balance tenant needs with long-term value
- Flexible lease terms that appeal to a broader tenant base
- Enhanced marketing of property differentiators
Getting ahead of competitors by updating positioning and opening dialogue early can make all the difference as leasing activity increases.
Identify Where Improvement Adds Tangible Value
Not all upgrades require major capital investment, but strategic property improvements can sharpen a building’s competitive edge. Whether it’s energy-efficiency enhancements, space reconfiguration, or minor amenity additions, investments that align with tenant priorities can amplify appeal and lead to stronger long-term occupancy. Source
Property Feature: 1205 S Main St offers visibility and long-term growth potential for a flagship hospitality or nightlife concept.
Lean into Strategic Partnerships and Data-Driven Decision-Making
One clear theme from industry forecasting is that success in 2026 will favor owners who combine market insight with strategic partnerships. Whether working with advisors, lenders, or capital partners, collaboration can improve access to opportunities and help navigate risk more effectively. Source
At the same time, data — from leasing trends to operational performance — is now essential in shaping decisions that align with broader market momentum.
Closing Thought: Intentional Planning Sets the Tone for the Year
The New Year is more than a calendar reset — it’s a strategic starting point. With brighter forecasts on the horizon and evolving tenant expectations reshaping demand, owners who plan early, stay informed, and act proactively will be positioned to capture the ripples of opportunity across the market.
Here’s to thoughtful strategy, confident execution, and success in the year ahead.
Contact The Barashy Group to schedule a 2026 CRE strategy session today.
