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Read articleReal estate enters September 2026 with financing conditions still materially different from the low-rate environment in which many portfolios were assembled. Valuations and transaction markets have adjusted, but recovery is uneven across offices, logistics, residential, hospitality and other asset classes. Occupiers are also reconsidering space requirements as work, retail and technology patterns evolve. Asset quality, energy performance and location increasingly determine whether properties can preserve rents and liquidity. The central issue is therefore not simply when markets recover, but which assets still fit future demand and where capital should be committed to repositioning rather than waiting for cyclical improvement.
Focus
Strategic Challenges
Strategic Impacts
Observed Patterns
Strategic Challenges
Strategic Impacts
Observed Patterns
Industry Challenge
Real-estate owners and investors are navigating a market where financing costs, construction inflation and changing occupier behavior interact with major differences in supply by asset class and city. Office demand is recovering selectively, logistics remains linked to supply-chain restructuring, and data centers are competing for power and land. The challenge is to avoid applying broad sector assumptions to increasingly local economics. Asset value depends more on location quality, tenant experience, energy performance and adaptability, requiring active asset management.
Future Outlook
The future built environment will integrate physical space with digital systems, distributed energy and services that improve how assets perform for occupiers. AI can optimize operations, while sensors and automation make buildings more responsive to energy, maintenance and user needs. Power availability and carbon performance will increasingly influence location and asset liquidity. At the same time, constrained new supply in some markets may increase the value of high-quality existing properties. Owners that invest selectively in experience, efficiency and adaptability can differentiate.
Market Outlook
Global real-estate markets are improving in 2026, with investment volumes and leasing activity recovering in several major regions. Office demand has reached new post-pandemic highs in selected markets, industrial take-up remains supported by e-commerce, manufacturing and supply-chain shifts, and capital deployment is building. Yet the recovery is uneven as higher energy costs, construction constraints and interest-rate uncertainty affect pricing. Prime, energy-efficient and well-located assets are outperforming weaker stock, making income growth and asset quality more important.
POV
Our approach
Our approach� begins with the economic purpose of each asset and examines demand, rents, utilization, location, operating cost and required capital alongside financing and market liquidity. We distinguish cyclical weakness from structural obsolescence because the appropriate response can range from holding through volatility to repositioning, conversion or exit. Portfolio analysis also considers concentration and changing urban or workplace patterns. This allows investment and asset-management decisions to reflect how properties will compete for occupiers and capital rather than relying primarily on historical yields or broad market recovery assumptions.
The data and estimates presented are indicative and intended for illustrative purposes. Actual outcomes may vary based on each company’s specific context, market conditions, operating model, implementation choices, and the quality and consistency of execution, including actions undertaken by the client.
Keypillars
Explore the key pillars that define this capability and shape how we create focused, measurable business impact.
Asset economics
Understands rents, yields, occupancy, development costs, financing, and asset values across major real-estate segments
Portfolio dynamics
Examines development, ownership, leasing, operations, capital allocation, and lifecycle decisions across property portfolios
Market transition
Tracks interest rates, urbanization, hybrid work, sustainability standards, and changing demand across the built environment
Strategic Framework
Assess asset classes, locations, occupiers, investors, developers, supply pipelines, and market economics
Monitor transactions, rents, yields, vacancies, pipelines, financing, and occupier behavior
Define acquisition, development, repositioning, disposal, financing, and asset-management priorities
Examine rates, demographics, employment, urbanization, regulation, construction, capital flows, and occupier demand
Evaluate portfolio quality, location exposure, occupancy, rents, asset economics, pipeline, and capital structure
Test rents, yields, occupancy, rates, development, regulation, and demand across asset classes
How we help
We help owners, developers and investors assess markets, asset portfolios and development opportunities under changing occupier and financing conditions. Support can include portfolio strategy, asset repositioning, investment prioritization, development economics, operating-model choices, M&A and geographic expansion. We can also help evaluate alternative uses, sustainability investments and technology where they materially affect asset value, enabling leadership to distinguish temporary market weakness from properties or formats facing structural decline.
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