Happy 2026 dear readers. I trust the end of 2025 came and went peacefully and that you are restored, rested, and ready to tackle the year ahead.
2025 marked a personal milestone for me with the launch of my
first book, The SEQUENCE, a Personal
Journey and Proven Framework for Commercial Real Estate Brokerage Success. I have been both
humbled and encouraged by the response. It has found favor with commercial real
estate professionals around the globe, which tells me that the principles of
structure, discipline, and long term thinking resonate no matter the market.
Looking ahead, 2026 promises another book entitled Holding the Keys, Commercial Real Estate Decisions That Shape
Family Business Success. It is already in the works, and I am excited to share it
with you. This book will read much like this column has for more than eleven
years and is written for those of you who run family businesses or advise them.
Real estate decisions inside family enterprises carry a different weight, and
this book is designed to address that reality.
But aside from new reading material, what do I see unfolding in
commercial real estate this year. Allow me to offer a few predictions.
Prediction One. Patience Will Continue to Be Rewarded
The frantic pace of decision making we saw in prior cycles has
cooled. In 2026, thoughtful buyers and tenants will benefit from slowing down.
Pricing expectations are still adjusting in some sectors, and deals that make
sense tend to favor those willing to wait, ask better questions, and negotiate
deliberately. Urgency will still exist, but artificial urgency will be exposed
quickly.
Prediction Two. Family Businesses Will Revisit Ownership
Conversations
With interest rates no longer whipsawing and lending standards
better understood, many family owned businesses will once again evaluate
whether ownership makes sense. Some will decide to buy. Others will decide to
lease longer term. What matters is not the outcome, but the intentionality
behind the decision. I expect more owners to separate emotion from strategy
when it comes to owning the building they operate from.
Prediction Three. Relocation Decisions Will Be Driven by
Efficiency, Not Just Cost
For years, rent dominated relocation conversations. In 2026,
efficiency will reclaim center stage. Workflow, labor access, power, yard,
parking, and functionality will matter as much as rental rate. Businesses that
optimize operations often outperform those that simply chase lower rent. I
expect more relocations to be framed around productivity rather than savings
alone.
Prediction Four. Industrial Remains Resilient, but Not Uniform
Industrial real estate will continue to be a bright spot, but not
all industrial properties will perform equally. Buildings with functional
obsolescence, excessive office, limited loading, or poor access will struggle.
Well located, efficient facilities that serve modern logistics and
manufacturing needs will continue to attract interest. Selection will matter
more than ever.
Prediction Five. Sellers Will Learn the Value of Preparation
Owners who prepare their properties for sale before exposing them
to the market will outperform those who do not. Clean documentation, realistic
pricing, and a clear understanding of buyer motivation will separate smooth
transactions from frustrating ones. In 2026, buyers remain cautious and
informed. Preparation will not be optional.
Prediction Six. Advisors Who Bring Clarity Will Win
Finally, I believe 2026 will reward advisors who bring clarity
rather than noise. Clients are tired of conflicting opinions and endless data
without context. They want thoughtful guidance, clear frameworks, and honest
conversations. Those who listen well and explain better will earn trust and
long term relationships.
As always, markets will surprise us. Headlines will distract us.
Predictions will be proven partially right and partially wrong. But the
fundamentals remain. Commercial real estate decisions are rarely just about
property. They are about people, timing, and long term consequences.
Here is to a healthy, productive, and thoughtful 2026. I look
forward to continuing the conversation with you each week.
Happy New Year.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
