Commercial real estate (CRE) is entering a decisive phase of transformation. Rising operating costs, increasing regulation and sustainability targets are fundamentally reshaping how buildings must perform. Set against this backdrop, digital capability is no longer an innovation agenda – it is operational necessity. With new research suggesting leaders have clear intentions to spend on data-driven insights, AI and digital twin technology, 2026 is going to be a pivotal year in the transition to human-centric, autonomous buildings.
Industry experts are cautiously optimistic about 2026. The CRE market should expect greater stability after a period of global macroeconomic volatility and policy uncertainty. But stability doesn’t necessarily equate to growth, and the ongoing pressures of rising operational costs, increased regulations, sustainability and customer demands will impact profitability unless operators take action to address key roadblocks.
Action requires a change of approach to the way CRE is operated; transitioning from managing static assets to operating smart buildings that contribute to business success.
That is why 2026 will see more operators exploring the benefits of digital intelligence. It offers the ability to improve building performance, resilience, reduce costs and improve energy efficiency, while providing best-in-class comfort and functionality for occupants, commanding premium rents and higher rates of tenant satisfaction and retention.
Even in a flat market, CRE leaders are still investing in this transformative technology, as revealed in our latest industry research – the Infrastructure Transition Monitor (ITM). This biannual study of global industry leaders by Siemens’ Smart Infrastructure shows that leaders have a clear understanding of the benefits of digital intelligence and data-driven agility, and are driving to embed these technologies into future operations.
The efficiency advantage
Progressive leaders are prioritizing investments in technology regardless of market conditions, using digital readiness as a competitive advantage to better operate their building and meet customer needs. 52% of CRE respondents believe their organizations need smarter technologies to enable rapid data integration; a similar number (53%) are planning to increase investments in these capabilities.
Industry leaders also believe digitalization has strong or transformational potential for CRE applications; 52% expect strong productivity gains, 44% think energy efficiency will be most impacted, while 43% cite cost reduction as a key benefit. In reality, the competitive advantage that efficient, data-driven operations offers is all these things and more.
Despite seeing the value of data-driven agility, only 37% of CRE leaders say they are at a mature or advanced stage with integrating digital systems into their operations, or are using it to make data-driven decisions today. This gap between ambition and capability is now one of the sector’s defining risks.
The cost advantage
When margins are being squeezed between falling occupancy rates and rising operational costs, finding savings and efficiencies is important for profitability. One fifth of leaders said their organization was unlikely to grow its revenue and/or profitability this year. Unsurprisingly real estate owners, developers, and asset managers stated in the ITM that cost optimization was their top priority.
For those increasing their investment in digital building technology, there are many cost advantages. Data-driven insights unlock value through smarter operations e.g. automating analysis, simplifying workflows, highlighting inefficiencies and predicting risks with more accuracy to improve resilience.
These smarter environments are more comfortable and welcoming for tenants. That’s why they outperform traditional buildings, commanding higher rents and delivering stronger occupancy rates.
Those investing now in smarter, data-enabled operations protect their margins and secure future growth. However, with only one third of ITM respondents saying they have the skills and workforce development plans in place to unlock the true potential digitalization offers, this could present a challenge.
The AI advantage
Digitalization is paving the way for human-centric, autonomous buildings; with digital technology in place, operators can build on this with artificial intelligence (AI), digital twin technology and autonomous systems. This completely transforms how a building interacts with its occupants to enhance the user experience and optimize operational costs.
The research shows leaders are particularly excited about the potential of AI-driven systems. Nearly two-thirds (59%) believe AI will transform their operations over the next three years, and six out of ten believe AI is already making critical infrastructure more resilient.
Yet intentions are not aligned with progress. 44% of respondents believe their organization is ready to implement autonomous systems, but only 36% are advanced in scaling up AI and digital twins. Fewer than one in three (29%) have made significant progress in implementing autonomous systems.
However, 2026 could be the year this changes. More than half of leaders are planning to make significant investments in autonomous building systems in the year ahead.
The digital difference
To understand why CRE leaders are prioritizing these investments, it helps to see smart building technology in action.
Philadelphia’s Pennsylvania Convention Center (PCC) welcomes a million guests every year. To reduce environmental impact while enhancing customer experience, the PCC invested in infrastructure upgrades including state-of-the art air purification and ventilation systems, water conservation, energy efficient LED lighting, reflective roofing and active energy management. These improvements were supported by Siemens’ smart building technology which created a solid foundation for energy savings and resource conservation:
- $686K in operational savings
- 5M kWh saved per year
- $1.3 million in power savings per year
- 18% reduction in energy consumption
- Awarded LEED Gold and GBAC STAR™ certifications
As well as the cost and energy wins, every meeting space, concourse and exhibit hall can now be individually monitored to ensure the best indoor air quality and ventilation, along with the optimum temperature to boost visitor comfort and wellbeing.
The impressive results demonstrate that digital infrastructure is no longer experimental – it is already delivering measurable operational and sustainability returns at scale.
Summary
2026 will be a defining year for the CRE market, as operators look to transform operations to balance cost pressures with the need to change for the future. Based on our ITM research, we expect to see more CRE leaders moving towards data-driven technology and utilizing the AI advantage, as they transition to a more autonomous future.
By Delphine Clément, Global Head of Verticals, Siemens Smart Infrastructure Buildings.
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