In January’s Commercial Property Market Review – trends to watch in 2026: Offices remain investor-favourites, although tenants are increasingly selective about locations. The rapid growth of the AI sector is driving strong competition for data centre sites. Retail outperformed in 2025 and occupier markets look the strongest in a decade.
Key takeaways
- Office demand stays strong — investors favour offices, though tenants are more selective on location
- Retail outperformed in 2025 — strong occupier markets and highest total returns, with investment volumes expected to pick up in 2026
- Hotel investment slowed but resilient — single-asset deals kept momentum; outlook for 2026 is stronger with more portfolio activity