Video—01.27.2026

2026 Commercial Real Estate Outlook

​​Global Head of Research & Strategy Indraneel Karlekar shares our Firm’s outlook on private real estate in 2026 and what investors could expect from this new market cycle.​​

Video Transcript

As we step into 2026, U.S. private real estate is entering a new cycle — one that’s full of opportunity and transformation. 

Over the past five quarters, core real estate has delivered consistent positive returns. 

Fundamentals are healthy, and values have adjusted to reflect the higher rate environment. 

Now, with NOI growth accelerating, supply tightening, and tenant demand staying strong, we’re positioned for lower vacancies and rising rents. 

What does this mean for investors? 

Sectors powered by demographics and innovation like housing, industrial, and healthcare are set to lead the way. 

The Fed’s steady rate cuts should boost liquidity and transaction volumes, while capital markets continue to flow toward high-conviction sectors like industrial, housing, healthcare, and essential retail. 

Debt markets are robust, giving high-quality borrowers and assets favorable access to financing. 

Clarion’s investment strategy is anchored in a few key macro themes including: ​demographics, innovation, housing affordability, and shifting globalization. 

These trends are driving structural opportunities — from senior housing and medical offices to industrial assets supporting e-commerce and supply chain modernization. 

2026 isn’t just a new year — we believe it’s the beginning of a new cycle. Let’s seize these opportunities together.

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Investment in real estate is speculative and involves significant risk. For more information about certain of the material risks and limitations associated with Clarion Partners’ investment advisory products, strategies and services, please see Clarion’s current Form ADV Part 2A brochure, which is available on the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/108803. Investors should consider their investment objectives, and it is strongly suggested that the reader seek his or her own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory risks and evaluate their own risk tolerance before investing.

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