Core Viewpoint - The commercial real estate sector is showing signs of recovery as interest rates decline, but sentiment among leaders is less optimistic compared to the previous year, with expectations for revenue improvement decreasing slightly from 88% to 83% for 2026 [1][2]. Sector Summaries Office Sector - Vacancy rates in the office sector are projected to drop below 18% as more tenants return, indicating a potential bottoming out of the market [3]. - There is a notable trend of "flight to quality," with Class A buildings nearing full occupancy, while office construction is at its lowest in over 30 years [3]. Multifamily Sector - The multifamily sector is experiencing easing rents due to a record level of new supply entering the market, although it has led investment sales volume since 2015 [4][8]. - Despite the easing of rents, demand remains strong as many potential homebuyers are unable to purchase homes, leading to increased rental demand [8][9]. Data Centers - Data centers are highlighted as a bright spot in the commercial real estate landscape, with demand significantly outpacing supply, and 100% of new construction in nine major global markets is already fully pre-leased [4][5]. - However, data centers face challenges related to financing, grid capacity, zoning, and local politics [5]. Future Outlook - The multifamily sector may benefit from potential incentives for affordable housing construction, although specifics are not yet defined [6][7]. - There is an expectation of future supply shortages in the rental apartment market as the construction of new buildings takes time, despite the current influx of new supply [9].