The Signal · Key Highlights

The data center boom that underpinned much of the nation’s economic growth in 2025 is expected to continue this year.
CBRE Global Head of Research Henry Chin predicted demand will continue to outstrip supply in 2026 and the construction boom will continue with particular ferocity in southern markets like Alabama, Georgia and the Carolinas.
Multifamily economist Jay Parsons expects the level of concessions landlords offer in Sun Belt markets to decline next year.
Parsons was particularly bullish on Dallas, Houston, Nashville and South Florida, where he expects the concessions to ease in the second half of next year.
CBRE’s Chin predicted a resurgent capital markets environment will lead to ballooning U.S. CRE transaction volumes. CoStar National Director of U.S. Office Analytics Phil Mobley said structural vacancy in the U.S. office sector will remain consistently high going forward.
Retail consultant Kate Newlin believes a broad swath of middle-market retailers and restaurants like Kohl’s and Outback Steakhouse will close locations in 2026 as consumer spending dries up.

⚠️ Why it matters

For CRE professionals, recognizing the forces behind occupier demand is vital to aligning leasing, investment, and development strategies with market realities. The lens of shifting occupier needs clarifies which sectors may see increased absorption or require adaptation in the face of changing user requirements. This perspective helps inform planning for space utilization, construction pipelines, and tenant engagement to respond effectively to evolving patterns.

Stop Reading Headlines

Subscribe to CRE 360 Signal™ Newsletter to Move Smarter in Today's CRE Market.

Start Understanding the Market

Key Takeaways

“The focus will likely remain on monitoring how occupier preferences translate into changes in demand for different property types. Stakeholders may track how space absorption evolves, particularly in sectors with projected growth or persistent vacancy. Adjustments in development and leasing activity could follow as the impacts of these shifting occupier drivers become more apparent.”

Never miss a Signal

Get the daily brief that busy CRE professionals rely on.