The first half of 2026 began with strong momentum before macroeconomic headwinds tempered activity in recent months. Despite this, the commercial real estate sector has remained resilient, underpinned by improving confidence across Australia and New Zealand, increasing capital deployment, occupiers prioritising quality and efficiency, and organisations maintaining a long-term focus on resilience and growth.
Cushman & Wakefield's leaders share their perspectives on the trends shaping the market and what lies ahead for the remainder of 2026.
NATIONAL OVERVIEW
Noral Wild, Cushman & Wakefield’s Chief Executive – Australia, New Zealand (ANZ) and North Asia said
"The first half of 2026 has reinforced the resilience of the Australian and New Zealand property markets, despite a backdrop of economic uncertainty, subdued consumer sentiment and ongoing caution from businesses and investors.
"While capital remains available and transaction activity has continued across a range of sectors, market participants have remained highly disciplined. Investors are focusing on quality opportunities; occupiers continue to prioritise efficiency and organisations are taking a measured approach to decision-making as they seek greater clarity around economic conditions.
"We have seen pockets of increased activity, particularly where pricing expectations have aligned and long-term fundamentals remain compelling. Domestic capital has continued to play an important role, while international investors remain engaged by the transparency, stability and long-term appeal of both Australia and New Zealand.
"While conditions remain somewhat challenging, the market has demonstrated an ability to adapt. As we move into the second half of the year, we expect confidence to improve gradually rather than rapidly, with opportunities emerging for those prepared to take a long-term view."
NEW ZEALAND
Paul Huggins, Managing Director New Zealand said
"The New Zealand market has shown encouraging signs of stabilisation during the first half of 2026, even though investors are applying more caution in their decision making
"Transaction activity has improved compared with recent periods, supported by a gradual return of capital and increasing alignment between buyer and vendor expectations. However, investors remain selective and focused on assets that can demonstrate strong income resilience and long-term fundamentals.
"We expect activity to continue improving through the second half of the year, although the recovery is likely to be measured rather than rapid. Opportunities remain strongest across industrial, infrastructure-related assets and the Living sector, where structural demand drivers continue to support investor interest."
COMMERCIAL REAL ESTATE (CRE)
David Hall, Head of CRE & Head of Brokerage Logistics & Industrial – ANZ said
"The first half of 2026 has been defined by a market that continues to work through economic uncertainty while gradually rebuilding confidence.
"Investors, occupiers and owner-operators remain active, but decision-making has become increasingly selective. The focus is firmly on asset quality, income durability and long-term relevance, rather than broad-based market optimism.
"Transaction activity has continued across all major markets, although participants remain disciplined in their approach to pricing and risk. In this environment, opportunities are emerging for investors who can identify assets with strong fundamentals and clear value-add potential.
"As we move into the second half of the year, we expect activity levels to improve gradually. While challenges remain, including ongoing economic uncertainty and cautious business sentiment, there is growing evidence that capital is ready to transact when the right opportunities arise."
INTEGRATED FACILITIES MANAGEMENT (IFM) & ASET SERVICES
Jon McCormick, Cushman & Wakefield’s Head of Integrated Facilities Management (IFM) and Asset Services, ANZ said
"2026 to date has reinforced that occupiers are placing greater emphasis on operational resilience, workplace experience and cost efficiency. As organisations continue to optimise their real estate footprints, the focus has shifted from simply managing buildings to extracting greater value from every asset across the portfolio.
"We're seeing clients increasingly prioritise integrated solutions that bring together facilities management, workplace services, sustainability and technology. In a market where businesses are seeking both efficiency and agility, operational excellence has become a key differentiator.
"Across Australia and New Zealand, the quality of the workplace remains a critical factor in attracting and retaining talent. The most successful organisations are investing in environments that enhance employee experience while delivering measurable operational outcomes."
PROJECT & DEVELOPMENT SERVICES (PDS)
Todd Hanrahan, Cushman & Wakefield’s Head of Project & Development Services, Australia & New Zealand said
"This year thus far can be characterised by growing confidence in project delivery, despite ongoing cost and supply chain pressures. Clients are continuing to invest in workplace, industrial and critical infrastructure projects that support long-term business objectives and future growth.
"While construction costs remain a key consideration, we're seeing a more disciplined and strategic approach to capital deployment. Organisations are prioritising projects that deliver tangible operational, cultural and sustainability benefits rather than simply expanding for expansion's sake.
"There is a growing focus on quality, flexibility and futureproofing. Whether it's office fit-outs, industrial facilities or major redevelopment projects, clients are looking beyond today's requirements and planning for the needs of the next decade."
STRATEGIC CONSULTING
Alan Herrman, Cushman & Wakefield’s Head of Strategic Consulting ANZ said
"The first half of 2026 has highlighted the importance of strategic decision-making in an increasingly complex market. Organisations are navigating economic uncertainty, technological disruption and evolving workforce expectations, all while seeking growth opportunities."
"What we're seeing across Australia and New Zealand is a shift from reactive decision-making to long-term strategic planning. Businesses are looking for deeper insights into how property, people and technology intersect to support organisational performance.
"The strongest-performing organisations are those willing to challenge traditional assumptions about real estate and workplace strategy. As market conditions continue to evolve, the ability to adapt quickly while maintaining a clear long-term vision will be critical to success."
SUSTAINABILITY & ERG
Matt Clifford, Cushman & Wakefield’s Head of Sustainability & ERG, Asia Pacific believes
"The first half of 2026 has reinforced that sustainability is now a core business and investment consideration. Asset owners, investors and occupiers are increasingly focused on initiatives that improve building performance, reduce operating costs and support long-term asset value.
"We are seeing a clear shift from sustainability ambition to implementation. Across Australia and New Zealand, organisations are prioritising practical decarbonisation strategies, energy efficiency measures and resilience planning that deliver measurable environmental and commercial outcomes.
"As market expectations continue to evolve, sustainability is becoming a key differentiator for real estate. The assets that will outperform over the long term are those that can successfully combine strong environmental performance with operational efficiency and occupier appeal."
