March 2026
Commercial Real Estate: 2026 Trends and Predictions
Jill Blumberg of Practical Law asked leading real estate practitioners to share their thoughts on recent developments impacting the US commercial real estate market.
Table of Contents
Current Trends
Capital Markets
Purchase and Sale
Leasing
Data Centers
Regulatory Developments
Climate Risk and Insurance
Construction
Conversions and Redevelopment
AI
Contributors
Jennifer Chavez
Jennifer Chavez
Partner at Sheppard, Mullin, Richter & Hampton LLP
Matthew J. Dulak
Matthew J. Dulak
Partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP
Bradley A. Kaufman
Bradley A. Kaufman
Partner at Pryor Cashman LLP
Andrew A. Lance
Andrew A. Lance
Partner at Gibson, Dunn & Crutcher LLP
Kathleen J. Wu
Kathleen J. Wu
Partner at Hunton Andrews Kurth LLP
The commercial real estate landscape entering 2026 bears little resemblance to the market of just two years ago. What began as a correction has evolved into a fundamental restructuring of how deals are financed, documented, and executed. The confluence of persistent capital constraints, climate-driven insurance volatility, regulatory acceleration, and technological disruption has created an environment where traditional approaches to transactions increasingly fail to address the realities practitioners face daily.
Looking ahead, stakeholders can expect continued market evolution driven by technological advancements, climate imperatives, and changing legal frameworks. These forces are reshaping commercial real estate legal practice across diverse areas, from capital markets and development to leasing and land use.
Legal professionals must understand not only what is changing but what they must do differently to protect their clients and close deals in this transformed market. Basic assumptions — about risk allocation, deal structure, and even the timeline of real estate development — are shifting. Practitioners must be able to integrate traditional transactional skills with new tools, anticipate regulatory shifts, and structure deals that acknowledge uncertainty while preserving the ability to execute when opportunities arise.
Against this backdrop, Jill Blumberg of Practical Law asked leading real estate practitioners to share their views on the state of the US commercial real estate market, including:
