Top Trends for 2026

Shifting work patterns, changing consumer behavior, and ongoing economic adjustments are reshaping how properties are used, valued, and invested in. For owners, investors, and businesses, understanding these trends is essential to making informed, strategic decisions.

Industrial Continues to Lead Demand

Industrial real estate remains one of the strongest sectors heading into 2026. Demand is increasingly focused on functional, well-located buildings that support modern logistics, manufacturing, and distribution needs. High ceilings, dock access, specialized power, and efficient layouts are top priorities for tenants and owner-users.

Michigan's manufacturing backbone — including automotive, advanced manufacturing, and supply-chain operations —continues to support this demand. Properties positioned near major transportation routes and population centers are especially well-positioned for long-term stability.

Office Market is Evolving, Not Disappearing

The office market continues to adjust rather than decline outright. While overall vacancy levels remain elevated in some areas, leasing activity is strongest in well-located, higher-quality buildings. Tenants are prioritizing flexible layouts, updated systems, and environments that support hybrid work models.

Older office properties are increasingly being repositioned or repurposed, creating opportunities for adaptive reuse into mixed-use, residential, or creative office space. For investors, this shift emphasizes the importance of asset quality and location over sheer square footage.

Retail Is Driven by Experience and Convenience

Retail real estate in 2026 looks very different than it did a decade ago. Neighborhood-serving centers, service-based businesses, and experiential retail are outperforming traditional big-box models. Consumers are drawn to spaces that offer convenience, dining, entertainment, and community connection.

In Michigan markets, retail locations with strong visibility, easy access, and local demand continue to attract tenants. Well-positioned retail assets remain a viable investment when supported by the right tenant mix and market fundamentals.

Mixed-Use and Adaptive Reuse Gain Momentum

One of the most impactful trends shaping Michigan's commercial landscape is the rise of mixed-use development. Older office buildings, underutilized retail centers, and industrial properties are being transformed into spaces that combine residential, retail, office, and entertainment uses.

These projects support walkability, community engagement, and long-term demand. Urban cores and growing suburban markets alike are seeing increased interest in developments that create dynamic, multi-purpose environment.s

Sustainability and Building Efficiency Matter More Than Ever

Sustainability is no longer a "nice-to-have" — it's a value driver. Tenants and buyers increasingly consider energy efficiency, operating costs, and long-term building performance when evaluating properties.

Properties with updated mechanical systems, energy-efficient lighting, and modern infrastructure are more competitive in the marketplace. Owners who invest in efficiency improvements are often better positioned to attract tenants and protect asset value over time.

Investors Are More Strategic and Selective

While capital markets have faced uncertainty, investors activity continues — with a more disciplined approach. Buyers are placing greater emphasis on cash flow stability, tenant quality, and long-term exit strategies.

Rather than chasing short-term gains, investors in 2026 are focused on assets that align with their risk tolerance and market fundamentals. In Michigan, local knowledge and strategic guidance play a key role in identifying opportunities that make sense in today's environment.

Looking Ahead

The commercial real estate market in Michigan is not standing still — it's adapting. Properties that align with modern business needs, evolving consumer behavior, and long-term market trends are positioned to perform best in 2026 and beyond.

At Bransco Properties, we help clients navigate these changes with insight, experience, and a strategic approach. Whether you're buying, selling, or repositioning an asset, understanding the market is the first step toward success.