Corporate real estate trends and predictions for 2026

1. Increased growth in the industry thanks to an improving economy

At the time of writing, interest and inflation rates in England have been falling, and there are indications of green shoots of growth in the UK economy. This may mean businesses and consumers have more money in their pockets and easier access to funding. This, in turn, can provide options and opportunities for:

• Landlords and developers to refinance their developments or purchase new stock;
• Tenants to expand and acquire new space; and
• Consumers are to try new experiences or exploit retail and leisure trends.

Green shoots do not equal a boom, but cautious optimism and calculated risks may help increase confidence and provide a snowball effect in the market. I’ve already seen an increase in enquiries for refinancing and commercial purchases, so I think this trend will continue.

2. Smarter, more consumer-focused retail and leisure offerings

Corporate Real Estate space isn’t necessarily reducing; it’s evolving. The templates for a successful offering arguably come from those who can and are prepared to shift to a smarter outlook. This means:

• Smaller units to reduce overheads;
• Using kiosks, AI assistants and showroom-style spaces to increase consumer engagement; and
• Analysing location data and choosing areas with untapped real estate potential (think micro-districts and campuses) over the high street to exploit the target market.

We’ve seen lots of consolidation within the retail and leisure markets over the last couple of years with pre-pack administrations, mergers and buy-outs. The smarter operators will be best placed to position their brands to exploit the opportunities that still exist and the new ones emerging.

3. Continued growth in popular sectors of the industry

Some areas of the real estate market have really boomed due to external factors, and I think that will continue. Some examples of this include:

• Premium office space – has been a key battleground as companies find new ways to attract talented staff. Where some landlords have struggled to provide the right facilities for tenants, larger companies have increased their capital expenditure and have become their own developers to build the perfect space. I think this approach will trickle down to medium-sized businesses, allowing more control in their place of work.
• Data Centres – are critical to satisfying the huge demand for AI and evolving tech. If this trend continues, many more data centres will be needed. As critical national infrastructure, planning constraints on their development may ease, and increased investment (think the UK-US tech deal last year) may expand access to funding, creating the perfect storm for further growth.
• Retail-led assets – such as shopping centres have been outperforming the real estate market recently, and it seems they are in the middle of a renaissance. Asset classes often go through cycles of popularity, and it seems retail-led assets are in the middle of theirs, so I think that upward trajectory will continue.

Anything I’ve missed? Let me know your predictions for 2026, and we can check back this time next year and see how we all did. In the meantime, if you need any assistance with your real estate matters, please do get in touch. I’d be very happy to see how the team and I can help.