Global CRE investment is picking up speed once again. Early 2025 delivered the first stretch of year-over-year growth since mid-2022, and most of that capital is still landing in the US. Private credit now drives nearly a third of new deal flow.
Private lenders now account for about 24% of US CRE lending, helping drive new originations forward.
Banks are slowly re-entering the market, and underwriting requirements are starting to soften.
Momentum and liquidity trends aside, there’s really just one question on a CRE investor’s mind: Which asset classes are likely to lead the way this coming year?
The short answer: data centers, mall-to-town center retrofits, and healthcare. In this blog, we take a closer look at the segments poised to capture investor attention in 2026 — and the opportunities they open up.
What will be the top CRE asset classes in 2026?
1. Data centers
Data centers continue to be one of the fastest-growing segments in commercial real estate, and it’s been on a roll for a few years.
In Q4 2024, US colocation inventory expanded by an impressive 47.5% year-over-year, yet vacancy still dropped to a record low of 1.6%.
This extreme imbalance between supply and demand has pushed rental rates sharply upward.
Since 2021, wholesale data center rents have climbed 30% to 44%, and net absorption in Q4 2024 outperformed the previous year by more than 15%.
For context, Microsoft, Meta, Google, and Amazon invested a combined $18 billion in AI-driven data center development in 2024.
Microsoft also announced plans to double its AI data center spending, reaching $80 billion in 2025.
Since the launch of ChatGPT in late 2022, US private spending on data center construction has nearly tripled.
2. Mall-to-town center retrofits
One of the most notable reuse trends heading into 2026 is the conversion of aging malls into vibrant town centers.
These projects seem to be especially successful in suburban markets where walkable, mixed-use districts appeal to millennials raising families and seeking more community-focused environments.
Instead of trying to revive traditional enclosed malls, CRE developers are reimagining these sites as open-air main streets anchored by residential units, restaurants, retail, flexible office space, and public parks.
Multifamily housing helps meet strong rental demand while activating the space around the clock.
Projects that succeed in this CRE segment tend to integrate mobility options, public gathering areas, and seamless live-work-play elements to maintain higher tenant engagement and command stronger rents.
You’ve probably heard of Mashpee Commons in Cape Cod — it’s one of the earliest large-scale mall retrofits in the country and still serves as a reference point for suburban redevelopment.
The site replaces the traditional enclosed mall with a walkable street grid that connects directly to surrounding neighborhoods.
So far, 78 of the 482 approved housing units have been built alongside 165,500 square feet of retail across 140 acres.
Belmar in Lakewood, Colorado is another success story. This $1 billion public–private redevelopment replaced the former 1.4 million-square-foot Villa Italia Mall.
Spanning 104 acres across 22 blocks, the project was made possible through tax increment financing and environmental remediation support.
Belmar now includes 700,000 square feet of retail, 300,000 square feet of office space, 1,200 residential units, and a Hyatt hotel.
It’s also worth looking at major retrofits that are currently under development:
- Monmouth Square (Eatontown, NJ) is a large-scale conversion featuring 1,000 planned apartments and a town square, with pedestrian pathways and new retail components. Completion is targeted for 2028.
- Sarasota Square Mall redevelopment (Sarasota, FL) will bring in new apartments, office space, and retail to transform the site into a mixed-use community hub. Most of the existing malls will be demolished, except for three big-box stores that will remain intact.
- The Rise (formerly Vallco Mall) (Cupertino, CA) is still early in the process, but this project is one of the most ambitious mall conversions on the West Coast. Demolition is already complete, and site preparation began in late 2024. Full construction is scheduled to start in fall 2026.
Healthcare facilities
Americans aged 85 and older are expected to increase by as much as 56% in the next eight years, which should fuel long-term demand for healthcare real estate.
While hospitals will of course remain critical for acute and specialized treatment, much of the growth will likely happen in outpatient and behavioral health settings.
Many CRE investors are increasingly targeting medical office buildings along with urgent care centers and specialized clinics as more services move out of hospitals and into lower-cost outpatient settings.
These properties should continue to do well as more patients move away from hospital-based care and look for treatment options that are closer to home and easier on their budgets.
Medical outpatient buildings are the next demand-driven growth story
Despite a steady pipeline of new outpatient medical building projects, vacancy declined last year, showing just how strong demand continues to outpace new supply.
Asking rents hit a record $24.86 per square foot (a 1.4% year-over-year increase).
Looking ahead, rents are projected to rise another 1.8% over the next two years, while vacancy is expected to dip below 9.5%.
Construction is moving off-campus
Roughly 80% of new MOBs are now being built away from hospital campuses, often in residential or retail areas.
These smaller, neighborhood-based facilities average about 26,500 sq. ft. and meet growing demand for convenient access to care.
Larger campus-adjacent MOBs are averaging 66,900 sq. ft., and they remain popular with institutions because of favorable insurance reimbursement structures.
Leasing is moving toward patient-facing services
Many healthcare systems have been scaling back on office space for admin teams in recent years, but they’ve increased space for patient care.
Total leasing volume is still below pre-2020 levels, but there’s been a steady rise in leases focused specifically on medical services.
These leases are often smaller than before but more directly tied to how and where care is delivered.
Capital markets are improving
Investment in MOBs rose 38% year-over-year to $2.5 billion last year, making that the first meaningful jump in four years.
Prices rose to an average of $291 per square foot while cap rates tightened to 6.9%, closing in on those seen in traditional office properties.
At the same time, healthcare REITs delivered the highest total return over 12 months compared to all other property sectors.
Activity is moving to new areas
Boston and Dallas remained strong this year, but construction is also picking up in fast-growing cities like Phoenix and Atlanta, with a mix of major campus developments and smaller suburban projects already in progress.
AI is influencing space use
Although still early, AI is beginning to change how large healthcare portfolios operate.
Improvements in facility management and preventive maintenance help reduce operational strain, which is a key advantage in markets facing labor shortages.
What other CRE assets are worth looking at in 2026?
The asset classes we’ve covered may be drawing the spotlight, but they’re not the only ones worth watching.
There’s still upside in other segments if the fundamentals are right.
| What to watch | What to analyze |
| 1. Population migration
Reliable signal of future demand |
States with sustained inbound migration from high-cost metros (like Florida, Texas, and Arizona) are drawing more renters. Markets with a rising population of adults in their prime working and renting years (ages 25 to 54) also typically see steadier demand for multifamily housing and local services. |
| 2. Economic health
|
Job growth outpacing national averages, especially in tech, logistics, and healthcare sectors, keeps vacancy rates low and leasing activity strong in office and industrial. Cities that attract venture capital and have active research institutions (like universities or tech labs) also tend to be good places to invest in office and lab space because demand in those areas stays strong over time. |
| 3. Infrastructure and
logistics |
Large-scale investment in ports, highways, and rail, especially in states like Georgia, Illinois, and California, is helping turn key regions into major logistics hubs. Expanded fiber and 5G networks are making those same markets more attractive for data centers and tech-driven industrial operations that rely on reliable connectivity. |
| 4. Industry diversification
|
States landing large-scale EV battery or semiconductor plants (like Ohio and Arizona) will see long-term industrial tenancy. It’s also worth watching biotech and life sciences activity in regions like North Carolina’s Research Triangle or Texas’ innovation corridor. These ecosystems are drawing consistent growth in lab, office, and mixed-use. |
How can you position your portfolio for stronger CRE performance in 2026?
- Act before sentiment shifts. Competition is increasing again, but you can secure stronger positions before demand accelerates by buying repriced, income-producing assets now.
- Be selective with capital. Instead of focusing on short-term bets, look into categories with high demand, such as data infrastructure and healthcare.
- Stress-test portfolios. Prioritize transparency and contingency planning by reviewing your exposure to distressed loans and rate volatility.
- Lean into partnerships. Expand your reach and tap into specialized expertise through alliances and joint ventures.
Planning your next move for 2026? Let’s talk.
Private Capital Investors is a direct commercial lender with the insight and flexibility to help you execute. Call 972-865-6206 to schedule a conversation.
Sources
- https://www.credaily.com/briefs/cre-outlook-2026-finds-opportunity-in-uncertainty/
- https://gomezgroup.com/the-top-7-states-for-commercial-real-estate-in-2026
- https://www.covercy.com/cre-asset-classes/
- https://urbanland.uli.org/issues-trends/reinventing-u-s-malls-as-mixed-use-town-centers#:~:text=Mall%E2%80%93to%E2%80%93town%20center%20retrofits,to%20millennials%20now%20raising%20families
- https://www.cbre.com/insights/reports/2025-us-healthcare-real-estate-outlook
