Predictions for 2026

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.