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wC and the Urban Land Institute annually release the Emerging Trends in Real Estate report, surveying major investors to assess sentiment, investment prospects, and key themes across property types and markets. The 2026 edition identified five central themes amid a cloud of uncertainty over commercial real estate, driven by tariff, immigration, and interest‑rate questions.

    **Capital Markets in the Fog** – Liquidity and sales volume have risen, yet expectations diverge. Some view 2026 as a “half‑full” scenario, buoyed by lower rates, plentiful debt, and pent‑up equity demand. Others see a “half‑empty” outlook, citing higher long‑term rates, sidelined equity, and reduced foreign investment.

    **Niche to Essential** – Properties once considered niche, such as data centers, are now deemed essential. This shift pulls capital away from traditional primary types, expanding the portfolio into multiple niche sectors and subsectors.

    **Back to Basics: Analytics Meets Operations** – Rapid demand shifts demand more than sector and market selection; detailed asset‑level analysis is now essential to capture new opportunities and challenges.

    **Demographics Will Define Demand** – Population and demographic trends are reshaping demand, requiring granular, data‑driven assessments at the asset level.

    **AI Moves into Real Estate** – Artificial intelligence is increasingly influencing investment decisions, operational efficiencies, and market analysis.

    The report also ranks each major property sector’s investment outlook on a 1–5 scale (1 = Abysmal, 5 = Excellent), compares scores to 2025, and offers insights. A related note suggests REITs may rebound, while a Q&A addresses the persistent valuation gap between public and private real estate.