CPE Executive Council: What Will Be CRE’s Biggest Issue of 2026?
What's ahead for next year? Read insights from our experts.
It’s almost 2026. What should commercial real estate executives set their sights on in the coming year? The CPE Executive Council shares their insights.
Maturity Wall
The preeminent challenge confronting the commercial real estate sector in 2026 is anticipated to be the convergence at the apex of the “maturity wall”—a large concentration of loan maturities necessitating refinancing within an environment characterized by elevated interest rates, diminished property valuations, and persistent sector-specific vulnerabilities, particularly within the office asset class. —Randy Blankstein, President, The Boulder Group
Problem Areas
The biggest commercial real estate issues in 2026 will center around capital access, risk management and technology transformation.
Capital Constraints
Raising money is harder: Slower deal volume and cautious foreign investment make fundraising competitive.
CRE now competes with booming sectors like energy and digital infrastructure for capital.
Investors must demonstrate liquidity, long-term stability, and a compelling investment case.
Portfolio Risk & Resiliency
Risk management is data-driven: Investors assess financing, valuation, insurance, climate risk and regulatory exposure.
Tools like predictive analytics, climate-risk modeling and smart building systems are becoming standard.
“Risk and resiliency” are emerging as a specialized discipline in CRE.
Technology Transformation
AI is reshaping CRE: Driving demand for data centers, automating underwriting and improving cybersecurity.
Owners must integrate fragmented building-system data (HVAC, lighting, access) to stay competitive.
Failure to adapt to AI-driven operations risks asset obsolescence.
Back to Fundamentals
Cap-rate compression is no longer a profit driver.
Success depends on location, tenant experience, operational efficiency, and demand fundamentals.
Office Sector Stress
Hybrid work is permanent, accelerating the flight to quality: Class A buildings thrive, while B and C offices struggle.
Older office inventory faces high vacancy and declining valuations.
Biggest Issue Overall
Capital scarcity combined with rising risk and tech disruption will dominate CRE strategy in 2026. Investors who can secure funding, manage risk and leverage AI will outperform.—Doug Ressler, Manager, Business Intelligence, Yardi
Interested in joining the CPE Executive Council and being featured in future articles? Email Jessica Fiur.
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