Contessa Brewer (Anchor) 00:00.000
Diana.
Diana Olick (Senior Real Estate Correspondent) 00:01.520
Well, Contessa, look, you know me. I always want to be optimistic heading into a new year, but unfortunately commercial real estate leaders are slightly less optimistic than they were ahead of last year, at least according to a survey from Deloitte. 83% of respondents said they
Diana Olick (Senior Real Estate Correspondent) 00:16.120
expect their revenues to improve by the end of 2026 compared with 88% last year. Fewer respondents also said they plan to increase spending. 68% said they anticipate higher expenses next year. But okay, let's Grill down onto specific sectors, starting with office, which seems to
Diana Olick (Senior Real Estate Correspondent) 00:33.600
have bottom. That's a good thing. Vacancy rates are expected to drop below 18% as more tenants return to the market according to Collier's. There will continue to be a flight to quality as in Class A buildings in many markets which are now almost fully occupied. Office
Diana Olick (Senior Real Estate Correspondent) 00:48.280
construction is also at its lowest level in over three decades according to Yardi. Moving to multifamily. Rents are starting to ease as a record level of new supply continues to make it through the pipeline. line. Multifamily has led investment sales volume since 2015 and there
Diana Olick (Senior Real Estate Correspondent) 01:05.000
are no signs of this changing, but its share of total volume is expected to ease a little bit as investors allocate more capital to office, data centers and retail. This according to Colliers. And speaking of data centers, which we can't get enough of, Deloitte called this
Diana Olick (Senior Real Estate Correspondent) 01:19.760
sector a clear bright spot in the US commercial real estate landscape. It pointed to nine major global markets where 100% of the new construction pipeline is already fully pre-leased. Data centers though do face some headwinds in financing, grid capacity, zoning, and of course
Diana Olick (Senior Real Estate Correspondent) 01:36.360
local politics. Now we've got much more in the outlook for all commercial real estate sectors in the PropertyPlay newsletter cnbc.com/propertyplay. You still have time to sign up. Contest it's free.
Contessa Brewer (Anchor) 01:48.240
It's a great, great read, Diana.