Key Value Drivers for Commercial Real Estate - 2026
We have identified four major themes set to impact commercial property in 2026. Here is our take on what to watch over the coming year.
Key Value Drivers for Commercial Real Estate
Green Premium Increasing
We are forecasting a continued acceleration in the divergence in value between high quality, sustainable assets and those that have not kept pace with tenant expectations. The full background and details of research to this trend can be found here.
Our commercial retrofit service provides detailed strategy on successfully updating buildings and portfolios to meet tenant demands. We maximise rents, increase capital value and protect and improve returns across asset and portfolio levels.
Click here to see our recent retrofit decarbonisation project in Dublin undertaking this exercise across 120,000 sq. ft of multi-let offices.
Solar as a Value-add Strategy
Solar economics have reached a tipping point. Since 2016, there has been a:
90% drop in solar panel costs
75% reduction in total installation prices
67% increase in efficiency
Payback periods under 4 years
With payback periods now often under 4 years, and significant IRR's, solar returns are now too significant to ignore and present the perfect value-add strategy. Furthermore, with the rise of CAPEX-free installation models, landlords can now improve NOI, energy performance and asset value without the upfront cost.
We are currently advising clients across a wide range of commercial scenarios involving the adoption of solar and battery systems, to improve NOI, secure lease re-gears, improve let-ability, improve EPC ratings and solve power availability challenges.
EPC Review Publication
The long overdue Government review of commercial EPC’s is due for publication in 2026. We expect there will be several key changes to the current legislation, including:
The reduction of EPC validity from 10 years to 5 years.
Confirmation of minimum EPC rating and dates - we expect the interim EPC C target to be scrapped and EPC B to be the confirmed benchmark.
A shift toward measurement and inclusion of operational energy use and consumption data.
Fabric Performance: A specific rating for how well the building retains heat (insulation, glazing, airtightness), separate from the heating system.
The results of the consultation will determine how quickly owners and asset managers will need to comply with the confirmed MEES requirements. We are already advising a large number of landlords on the likely impact of their portfolio upgrade strategy.
Click here for details of a £620,000 CAPEX saving created for a global investment manager during a portfolio EPC renewal project.
AI Adoption
2026 is the year AI becomes a core operational partner in commercial real estate, creating a fundamental shift in efficiency, asset performance and returns.
The early wins are already clear: AI-enhanced BMS systems are driving down energy costs and carbon footprints in real-time.
As the year progresses, the biggest gains will move into the front office. We expect AI to streamline the heavy lifting of underwriting, identify leasing opportunities through predictive data, and transform maintenance from a reactive expense into a proactive strategy.