The global commercial property market is slowly finding its footing after several years of instability, according to Deloitte’s latest outlook for 2026. While investor sentiment is improving, the recovery remains uneven and closely tied to the cost of capital, regional economic health, and the industry’s ability to adapt to technology and sustainability demands. Deloitte’s research, based on a survey of hundreds of senior real estate executives worldwide, suggests that most expect modest revenue growth in the coming year but also higher operating costs. Confidence has strengthened from the low points of 2023–2024, yet the industry is still shaped by cautious optimism rather than exuberance. Market stabilisation is most visible in North America and Western Europe, where investors are cautiously returning to high-quality assets with steady income streams. In contrast, parts of Central and Eastern Europe, along with Asia-Pacific, are seeing stronger rebounds driven by infrastructure spending and renewed cross-border capital flows. Across all regions, investment is becoming more selective, with performance increasingly dependent on asset quality and local demand fundamentals. Financing remains one of the industry’s most complex challenges. Developers and owners are facing a wave of loan maturities originally priced under pre-inflation conditions. Many are being forced to refinance at significantly higher rates or turn to private credit and alternative lenders, which now represent a growing share of total market funding. This shift marks a broader transformation in how capital is sourced and deployed. Institutional investors continue to favour established, income-producing properties, while speculative and under-leased assets struggle to attract funding. Technology-driven sectors are emerging as the most resilient areas of real estate. Data centres, logistics hubs, and digital infrastructure are expanding rapidly to meet the surging global demand for cloud storage, AI processing, and connectivity. Health-care-related properties and professionally managed rental housing are also gaining traction for their stable, long-term returns. The office sector remains divided. While some central business districts continue to experience sluggish leasing activity, high-specification and well-located buildings—especially those integrated with mixed-use amenities—are regaining appeal as employers refine hybrid-work strategies. The report underscores that technology adoption is no longer optional. Companies are investing heavily in AI-driven analytics, digital leasing platforms, and predictive maintenance systems to improve operational efficiency. Deloitte notes that artificial intelligence is already reshaping valuation models, tenant engagement, and portfolio risk management. Operational priorities are also shifting inward. Cost discipline, workforce retention, and tenant experience are now seen as strategic pillars of value creation. At the same time, sustainability continues to move up the agenda, with developers investing in energy-efficient retrofits, low-carbon materials, and certifications that enhance long-term asset performance. Deloitte concludes that 2026 will reward companies able to balance prudence with reinvention. Real estate leaders who diversify funding sources, embrace data-driven decision-making, and treat innovation as a core part of risk management will be best positioned to capture the next wave of growth. The sector has turned the corner from crisis to recalibration. Yet success will depend less on waiting for a global rebound and more on how effectively investors and operators adapt to a rapidly changing financial and technological environment.