How are CRE professionals reacting to market uncertainty?
Commercial real estate feels uncertain these days. High costs and stubborn interest rates are increasing business expenses. Declining occupancy and elevated tax rates put more pressure on revenue. Meanwhile, new tools and technology (especially artificial intelligence) are changing the very way we work, no matter what the role.
With so much going on, it can be hard to see which challenges will shape our industry the most – and how to meet them. That’s why MRI Software polled commercial real estate professionals during January and February 2026. Nearly 600 people responded, leading to the Commercial Real Estate Industry Pulse Check. The report highlights the most pressing issues faced by people on the ground. people on the ground.
Today’s industry: a snapshot
Nearly 600 people – from company leaders to property managers, accountants, and everyone in between – across multiple industry areas participated in the survey. The result? Real-world insights directly from those most affected by today’s changes – and who can best guide their organizations through them.
These professionals shared signs of frustration as well as optimism. Eighty-one percent of respondents reported a more uncertain market direction than 12 months ago, but more firms are taking action to stay ahead of it. Data is driving organizations – over 70% of respondents say visualizations have improved multiple business areas – but data is still not being used to its full value. The results also reflected a great deal of momentum for AI, with 62% of respondent organizations making AI preparations. However, 54% of respondents said that no AI training was available.
You can find more details about these findings and more in the complete report. To put them in context, here’s what we discovered about current market conditions..
Reactions to market uncertainty
Commercial real estate firms have always weathered changes in occupancy and operating costs. Today’s environment is also burdened by wide-ranging uncertainty and volatility. Inflation, mortgage rates, and even what revenue sources will be viable in the future are all weighing on the market. Given these conditions, it’s no surprise that 81% of the survey respondents said their organizations had a greater risk tolerance for uncertainty and volatility than 12 months ago.
Commercial real estate firms have managed this elevated risk in varied ways over that time. Some are removing decision-limiting factors and aligning their decision models with current realities:
- 47% of respondents are adjusting their forecasting models to account for more risk.
- Over 20% have increased market risk tolerances in their strategic plans.
Many respondents also reported that their firms are updating portfolios to meet market conditions by holding onto assets longer, focusing on operations instead of portfolio growth:
- Over 27% reported refinancing portfolio assets.
- Almost 18% delayed acquisitions.
- Nearly 17% paused new development.
- Nearly 25% sold assets.
Still other firms are simply waiting out the turbulence, taking a “wait and see” approach until market conditions improve:
- 37% put off major decisions until conditions improve.
- Over 18% have taken no actions yet.
The current mood of commercial real estate was expertly summarized earlier this year by Tom Barkin, president and CEO of the Federal Reserve Bank of Richmond: “I do think that businesses still feel that heightened uncertainty. And that has something to do with…why people aren't leaning into investments the way they might. We are seeing though, across the data and across the economy, a lot of resilience, despite that fog. People are learning to live with the uncertainty. ”
Despite some of the negative sentiment, the market has signs of life. Taken in full, the survey results show that to keep their businesses moving forward in an uncertain environment.
What’s shaping commercial real estate today
When asked about their biggest concerns in today’s market, commercial real estate professionals cited everything from broad economic issues to personalized pressures of technology. Three main themes emerged across the open-ended responses:
The economic big picture
Thirty percent of respondents feel increasingly affected by interest rates, inflation, recession, political and policy instability, market uncertainty, and falling property values.
Occupancy vs. WFH
Eighteen percent of respondents said revenue and growth continue to be pressured by occupancy challenges, driven mainly by hybrid and remote working models as well as repurposed spaces.
Technology adoption and integration
Along with the expected pro- and anti-AI sentiments, 16% of respondents are struggling with fragmented data, outdated software, and proper training.
Commercial real estate professionals’ biggest concerns understandably reflect broad issues beyond their control. However, they do have the power to optimize their technology and position themselves for greater performance once the current “wait and see” period of uncertainty is over.
Explore more CRE insights
The evolution of commercial real estate is nothing new. What is new is the nature of that evolution. The full Commercial Real Estate Industry Pulse Check report explores this idea further. It shares unfiltered thoughts about AI and market uncertainty, as well as findings about issues surrounding data and technology.
Read the report to see how unlocking the full value of data, analytics, and artificial intelligence – and properly training people how to use them – can help commercial real estate organizations do more to build thriving communities and stronger businesses.
This Week’s Sponsor
MRI Software is a leading provider of real estate solutions and industry data that transform the way communities live, work and play. Its open, intelligent platform empowers owners, operators, agents and occupiers in commercial and residential property organizations to stay ahead in rapidly changing markets. For more information, please visit mrisoftware.com.
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