PwC, ULI Look at Emerging Trends for 2026
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The commercial real estate sector is seeing a renewed focus on core fundamentals and deploying capital into high-growth areas, according to Emerging Trends in Real Estate 2026, from PwC and the Urban Land Institute.
“The past few years have tested the industry’s ability to pivot,” said Andrew Alperstein, a partner with PwC’s U.S. real estate practice. “From the rapid evolution of AI infrastructure to the growing demand for senior housing, the opportunities in 2026 will favor those who combine speed, data-driven insight and a long-term strategic vision.”
The report cited Dallas-Fort Worth, Jersey City, Miami, Brooklyn and Houston as some of the top markets to watch in 2026.
Beyond geography, the report examined how sector dynamics are evolving as investors adapt to new market circumstances. Several property sectors show potential for growth, innovation and resilience in 2026, including data centers, senior housing and self-storage.
Data Centers Power Ahead Amid Constraints
“Demand for data centers continues to surge, driven by rapid growth in artificial intelligence and cloud computing, even as power shortages and supply bottlenecks limit expansion,” the report said. “With national vacancy below 2% and most facilities pre-leased before completion, constrained capacity is keeping rents elevated and development competitive. Growth is increasingly concentrated in markets with reliable energy access, underscoring how power availability is defining the next phase of digital infrastructure investment.”
Boomers Bring the Next Big Wave
Demand for senior housing is approaching a historic inflection point as the first baby boomers turn 80 in 2026, the report noted. “Limited new supply, evolving care models and shifting consumer preferences are driving record-high occupancy levels. Developers are diversifying offerings, from active adult ‘independent living lite’ communities to wellness-focused and tech-enabled facilities,” it said.
Self-Storage Transitioning from Utility to Lifestyle/Investment Hybrid
The self-storage sector continues to evolve into a hybrid asset class with broader appeal, PwC and ULI said. “Demand is being propelled by housing constraints and lifestyle trends favoring flexibility. A new subsegment, storage condos, is emerging as a unique investment opportunity for individuals and small businesses, blending industrial and personal-use space in innovative ways.”
Offices Reprice Amid a Divided Market
The report said the office sector is “stabilizing” as top-tier buildings in major markets capture record rents while overall valuations remain far below pre-pandemic peaks. “Lower-quality and less central properties continue to face elevated vacancies, reflecting a widening divide between trophy assets and struggling stock. This bifurcation, by both building class and geography, suggests that recovery will be selective and uneven across the sector.”
