2026 real estate trends: What commercial AEC firms need to know

The 2026 Emerging Trends in Real Estate report from the Urban Land Institute (ULI) and PwC offers a clear signal to the architecture, engineering and construction (AEC) industry: while the market remains uneven, opportunity is increasingly concentrated around purpose-driven, resilient real estate. 

For commercial AEC firms across the country, the outlook reinforces the key theme we continue to see play out across projects and regions that capital and momentum are flowing toward spaces that serve long-term community, workforce and societal needs. This includes familiar sectors like education, healthcare and government, but also emerging and evolving asset types where firms have room to grow. 

A selective market rewards clarity and specialization

The 2026 outlook describes a market that is neither stalled nor surging, but highly selective. Capital is cautious, underwriting is disciplined and stakeholders are prioritizing projects with clear purpose, strong fundamentals and long-term viability. 

For AEC firms, this environment favors specialization over generalization. Firms that can clearly articulate where they add the most value, whether through technical expertise, operational insight or experience with complex stakeholders, are better positioned to win work as competition intensifies. 

Demographics continue to push demand across sectors

Demographic changes remain one of the strongest tailwinds shaping commercial real estate and development. With the first Baby Boomers turning 80 in 2026, demand for senior housing, healthcare facilities and supportive living environments is reaching a critical inflection point. 

At the same time, population growth and migration patterns are fueling continued investment in education, public infrastructure and community-serving facilities in high-growth regions. In the AEC space, these trends point to sustained opportunity, particularly for teams that understand how to design for flexibility, longevity and evolving user needs. 

Essential and experience-driven asset classes gain momentum

The report highlights a continued shift toward asset classes once considered niche, now viewed as more resilient in uncertain economic conditions. Senior housing, healthcare facilities, civic spaces and specialized institutional environments are increasingly core investment priorities. 

Beyond traditional definitions of “essential,” there is also growing emphasis on experience-driven spaces, or environments that prioritize wellness, accessibility, safety and usability. This has implications across sectors, from modernized government buildings and education facilities to adaptive reuse projects and mixed-use developments that serve broader community needs. 

Education, workforce and institutional spaces evolve

Education-related development remains active, though it is becoming a bit nuanced. K-12 schools, higher education campuses and workforce training facilities are being planned with greater flexibility in mind, responding to enrollment shifts, new learning models and changing expectations around how space is used. 

When it comes to AEC firms, this evolution creates opportunity not only in education itself, but in adjacent areas such as research facilities, training centers, civic partnerships and public-private projects that support workforce development and economic growth. 

Office, civic and adaptive reuse projects demand purpose

Office markets continue to show uneven recovery, with a clear divide between high-quality, well-located assets and outdated properties struggling to compete. The report underscores that projects with a defined purpose, strong design and clear value proposition are more likely to succeed. 

This principle extends to government and civic facilities, where stakeholders are often focusing on how spaces serve people, support transparency and adapt over time. Renovation, repositioning and adaptive reuse are becoming important growth areas for firms able to connect design decisions to long-term outcomes. 

Markets to watch and opportunities to expand

The report points to continued momentum in markets such as Dallas–Fort Worth, Miami, Brooklyn, Houston and Nashville, regions characterized by population growth, infrastructure investment and diversified economies. 

For commercial AEC firms operating nationally or regionally, these markets present opportunities not only to deepen work in familiar sectors but also to expand into adjacent asset types that align with existing expertise. 

What this means for commercial AEC firms

The 2026 outlook reinforces a critical reality for the AEC industry: opportunities exist, but they must be earned. Firms that succeed in the coming year will be those that understand where demand is growing, how their experience translates across sectors and how to clearly communicate their value in a crowded field. 

In a market shaped by demographic change, selective capital and evolving expectations, positioning matters. Being able to connect past project experience to broader real estate and development trends helps decision-makers see not just what you build, but why your work is relevant now.

At Pierce PR, we partner with commercial AEC firms across the country to help them do exactly that, translating complex expertise into clear, credible narratives that support growth in both established and emerging markets. 

Interested in what this could look like for your firm?

If you’re navigating how to position your expertise, prioritize growth markets or stand out in a more selective real estate environment, we’d love to talk. Our Master Plan™ is Pierce PR’s strategic assessment process designed specifically for AEC firms, helping teams evaluate where they are today, where opportunity is emerging and how to align messaging, marketing and PR to support business goals.

Learn more about our Master Plan™, or, if you’re ready to start a conversation, reach out to our team directly. 

Bri Carlesimo is the Vice President of Client Experience at Pierce Public Relations, a Nashville-based strategic PR and marketing firm specializing in the architecture, engineering and construction (AEC) industry and professional services. With over a decade of experience leading PR strategy, brand positioning and executive thought leadership, Bri helps businesses build trust, navigate complex communications and elevate their visibility across the industry. Connect with Bri at bri@pierce-pr.com or on LinkedIn.