Commercial Investing Outlook Remains Unchanged

Cycle Patterns Persist

According to the Commercial Property Executive, commercial investing in 2026 is marked by similar themes that dominated the market a year earlier. LaSalle Investment Management leaders acknowledged this sense of déjà vu in a recent press conference, emphasizing that while some trends carry over from 2025, unique factors are influencing this year’s strategy.

Current concerns include global economic and geopolitical uncertainty, a visible slowdown in new construction, and rising vacancy rates. However, solid capital raising and steady appraisal values across most asset classes provide some optimism for investors.

Uneven Sector Recovery

LaSalle’s research points to a cautious, gradual recovery for the sector overall. Green Street forecasts suggest average revenues could rise to nearly $125 PSF in 2026, about 4% above the prior year. Even so, future gains will depend on sustained rent growth and positive supply fundamentals across asset types.

The firm sees opportunity in industrial outdoor storage and affordable housing, citing broad and persistent demand. Sectors like logistics, self storage, medical offices, and transitional lending hold selective appeal, with LaSalle adapting its allocations based on prevailing vacancy rates.

Strategic Shifts in Allocation

LaSalle IM’s 2026 approach avoids riskier segments, skipping office, life science, and data centers amid ongoing volatility. The focus remains on income-driven properties, as management prioritizes stable cash flows over potential long-term appreciation. This aligns with the firm’s recent capital commitments to industrial strategies that blend multifamily lending and logistics-oriented assets.

LaSalle’s leaders note that recovery across commercial investing will be contingent on effective capital deployment and on solidifying fundamentals in prioritized asset types.