The global economy held up better than expected in 2025, and many of the same pressures will carry into 2026. Commercial real estate is starting to recover, though pockets of stress remain, according to Principal Asset Management in its 2026 U.S. Inside Real Estate Sector report. Going forward, returns should be driven more by rental income and picking the right markets and assets, with investors also diversifying more globally.
Power constraints are becoming a major limiter for AI-driven growth, making energy availability a defining issue for data centers and tech-related real estate.
The commercial real estate recovery is uneven, with strong gains in top markets and sectors while weaker segments remain flat or distressed, making selectivity the big theme for 2026.
Global capital flows are shifting, driven by a softer dollar, geopolitical realignment and tight
