US Property Recovery Broadens Beyond Data Centers

Recovery Extends Beyond the AI Boom

Data centers may dominate headlines, but the US property rebound draws strength from much more than tech-driven demand. According to CoStar News, leading brokerages increasingly see broad-based growth across CRE in 2026. Hyperscale AI has supercharged markets like San Francisco’s South of Market district. However, traditional property sectors are also improving.

Shrinking construction pipelines across office, industrial, and multifamily now support stronger fundamentals. Less new supply helps offset years of oversupply and elevated borrowing costs. Meanwhile, data center development creates opportunities across site selection, leasing, construction, and property management. Yet digital infrastructure now represents one pillar of a broader, increasingly synchronized recovery.

CoStar data reinforces the breadth of this rebound. Leading firms have posted record leasing numbers and strong profit growth. Persistent rate pressure and older asset obsolescence still create risks. Still, executives report stronger deal pipelines across the commercial property spectrum through year-end. That momentum is strengthening confidence among brokers, developers, and investors.

Shrinking Supply Lifts Fundamentals

A national slowdown in construction sits at the center of the emerging CRE recovery. ConstructConnect reported $81.5B in data center project spending through June. That figure already exceeds the $72.5B recorded during all of 2025. However, construction activity outside data centers continues to contract.

Office inventory fell roughly 7M SF over the past year. Demolitions removed obsolete properties and helped push vacancy down to 13.9%. Apartments show a similar shift. Tenants absorbed 164,000 units during Q2, while developers completed only 118,000, according to CoStar analyst Grant Montgomery.

CoStar expects apartment openings to decline 23% this year and another 19% in 2027. Demand is also returning across Sun Belt and gateway markets. Even overbuilt markets like Austin are seeing rents stabilize as completions slow. Southern California industrial owners also report declining vacancies and stronger leasing. Together, these trends help owners regain pricing power and support broader profit growth.

The Details

CBRE, JLL, Cushman & Wakefield, Colliers, and Newmark each recorded double-digit revenue growth during Q2. JLL posted a 92% profit increase. CBRE increased US office leasing revenue 29%, while Newmark recorded 17% growth. Cushman & Wakefield generated record quarterly revenue of $2.8B and increased leasing revenue 27%.

The momentum extends beyond office. CBRE increased US industrial leasing revenue 17%, while Colliers reported 23% industrial leasing growth. Prologis also signed record levels of new leases. Meanwhile, CBRE’s data center solutions unit increased revenue nearly 30%, exceeding $700M during Q2.

Cushman & Wakefield increased data center-related revenue 83%. The segment now represents 25% of its facilities-management revenue. JLL managed 340 data centers at quarter-end and expects that portfolio to grow significantly.

CRE Rebound Is Broad, Not Just Tech-Driven

Market participants increasingly view this recovery as broader than previous sector-specific booms. Data centers continue fueling site selection, construction, leasing, and operations. However, non-tech transactions remain critical revenue drivers across CRE.

Citi analysts note that major brokerages continue benefiting from office, multifamily, and industrial leasing. Capital markets activity rooted in traditional CRE demand also supports growth. Cushman & Wakefield CEO Michelle MacKay said commercial real estate now extends far beyond office and retail. It increasingly includes digital infrastructure, engineering, facilities management, and investment advisory services.

This broader mix allows major firms to capture both cyclical recoveries and structural digital growth. CRE revenue no longer depends solely on AI or continued data center expansion. Tightening fundamentals and renewed confidence across urban and suburban property types provide additional support. Falling office availability and slowing multifamily deliveries reinforce that shift.

Why It Matters

The recovery across office, multifamily, and industrial matters at both the asset and enterprise levels. For brokerages and services firms, diversification across asset classes reduces risk and supports more durable revenue streams. JLL’s 92% profit increase demonstrates that broader momentum. CBRE also raised its annual profit outlook as traditional and digital infrastructure activity strengthened.

Improving property fundamentals had already positioned CRE for stronger performance in 2026. Multifamily fundamentals could improve further as supply contracts. CoStar expects new apartment supply to decline 23% this year. That slowdown should reduce lease-up competition and strengthen landlords’ pricing power, including across previously challenged metros. Industrial absorption is also catching up with available supply, according to CoStar and major operators.

Execution risks remain across the market. Companies still face tighter financing, geopolitical uncertainty, and uneven demand for aging properties, particularly offices. However, stronger leasing across trophy and recovering legacy assets signals healthier market rebalancing. CRE leaders may benefit from AI, but traditional occupancy and rent growth increasingly reinforce that upside.

What’s Next

Major firms expect robust deal flow through the end of 2026. Data center construction should remain elevated, while traditional property sectors continue gaining traction. Leading brokerages are pursuing opportunities across asset management, capital markets, leasing, and facilities management.

Market observers will watch industrial and apartment tightening for signs of stronger rent growth in 2027. Office investors will also test whether the ongoing flight to quality can support broader recovery. Meanwhile, stabilizing Sun Belt multifamily markets could provide another important indicator of improving fundamentals.

Constrained construction could extend the recovery across core property sectors. If demand remains resilient, transaction revenue and operating margins could expand further. That combination would make this cycle less dependent on any single growth engine. further as fundamentals improve.