The first half of 2026 has reinforced that when it comes to commercial real estate, local momentum often trumps broad national narratives. While economic uncertainty, interest rate policy, and geopolitical developments continue to dominate headlines, SIOR members on the ground say the factors driving leasing, investment, and development decisions have become increasingly market specific.
From the Pacific Northwest to the Southeast to Midwest, occupiers are making strategic decisions based on local infrastructure readiness, regulatory environment, labor availability, and business confidence. At the same time, industrial fundamentals continue to evolve beyond the extraordinary post-pandemic cycle, with emerging technologies and advanced manufacturing creating new opportunities—and new challenges—for brokers and their clients.
Three SIOR members from across the country shared their perspectives on the biggest stories shaping commercial real estate through the midpoint of 2026 and what they're watching during the second half of the year.
Infrastructure Readiness A Top Priority During Site Selection
Brokers on the ground in diverse markets across the country note infrastructure conditions ranking toward the top of considerations right now driving significant site selection decisions.
Historically, industrial users evaluated markets primarily through the lens of transportation access, workforce availability, and real estate costs. Today, those fundamentals remain important, but available electrical capacity, water resources, and utility delivery timelines have become equally critical infrastructure considerations.
For Deborah McGill Smith, SIOR, Executive Vice President and Partner at Cushman & Wakefield | EGS Commercial Real Estate in Birmingham, AL, utility readiness is increasingly determining which communities can compete for major investment.
"Historically, discussions around site selection focused on location, labor and transportation," she said. "Today, available power capacity and utility delivery timelines are often among the first considerations. As demand from advanced manufacturing and data centers grows, utility readiness is becoming a major competitive advantage for both communities and property owners."
McGill Smith points to Virginia Transformer's decision to develop a 600,000-square-foot manufacturing facility in northwest Alabama as an example of how infrastructure readiness is increasingly shaping corporate site selection. Beyond Alabama's skilled workforce and business climate, the Shoals Research Airpark offered a development-ready site supported by recent public infrastructure investment, dedicated rail service and coordination among the Tennessee Valley Authority, local utilities and economic development partners. The project demonstrates how utility capacity and transportation infrastructure have become critical competitive advantages as manufacturers supporting grid modernization, data centers and advanced industry evaluate expansion opportunities.
Data Centers Continue to Define Regional Growth
Few sectors have generated more attention in 2026 than data centers, and their influence extends well beyond the facilities themselves.
In Columbus, Ohio, Matthew Osowski, SIOR, Executive Vice President at NAI Ohio Equities in Columbus, OH, says the sector has become one of the defining stories for his region.
"The biggest story this year has definitely been the continued boom in the data center market," he said. "From labor to power to infrastructure, growing and retaining the sector has dominated conversations in our market."
As one of North America's leading data center markets, Columbus has also become a hub for massive economic development announcements, including Intel, Honda-LG Energy Solution and the recently announced Anduril Arsenal One project. While these investments continue to generate supplier activity throughout Central Ohio, they are also placing new demands on labor markets and utility infrastructure.
Osowski believes these ripple effects deserve greater attention.
"The mega projects—while beneficial for our community and job growth—are placing additional strain on the broader market, particularly in terms of labor availability," he said. "They are also increasing pressure on undeveloped areas to provide adequate utility infrastructure."
Those dynamics are also reflected in development activity. After a relatively measured period following the post-pandemic construction wave, speculative industrial development has accelerated significantly in Columbus. Nearly 5 million square feet of speculative warehouse construction broke ground during the second quarter alone, bringing total construction activity to more than 7.2 million square feet.
Rather than signaling another period of overbuilding, Osowski sees today's development cycle as reflecting a more disciplined market responding to durable demand.
"We have corrected ourselves, but it's a discipline-driven correction," he said. "There is potential for volatility given inflation and geopolitical uncertainty, but our market never really got over its skis."
Policy Is Driving Occupier and Capital Movement in Real Time
Beyond the infrastructure and labor needed to retain and attract top occupiers, public policy is critical for fostering an environment where businesses choose to invest.
For Christopher Bell, SIOR, Managing Broker of NAI Black in Spokane, Washington, one of the most significant stories of 2026 has been the movement of tenants and investment capital across state lines due to public policy shifts.
"The biggest story in our market is capital flight from Washington into Idaho," Bell said. "In Spokane, that move is not theoretical—it is only about 20 minutes east."
According to Bell, companies can retain access to the same workforce, transportation network and customer base while operating under a different regulatory environment.
"I represent a client with a large distribution facility in Spokane that is instructing 'Get me out of Washington State, ASAP, at any cost,'" he said. “We’ve gone beyond businesses being frustrated by the regulatory environment to now being ready to make occupancy decisions based on it.”
Specific State policy issues that Bell notes are driving this sentiment include evolving tax proposals, land-use restrictions and development policies.
"Capital is mobile," he said. "If Washington continues to make it harder, slower and less predictable to build, own, lease, and operate commercial real estate, more tenants and investment will continue moving east into Idaho. There are similar stories playing out with neighboring States across the country."
Fundamentals Outweigh Short-Term Developments
Although interest rates and Federal Reserve policy remain closely watched, all three members emphasized that long-term business fundamentals continue to outweigh short-term monetary policy when major investment decisions are made.
McGill Smith noted that while lower borrowing costs would likely improve transaction activity, manufacturers and industrial users continue to prioritize long-term confidence over temporary financing conditions.
Similarly, Osowski said developers in Central Ohio are not underwriting projects based on expectations of imminent rate reductions.
"The optimism in industrial isn't really coming from monetary policy," he said. "It's coming from constrained new supply and mega-project demand."
That perspective reflects a broader shift occurring across commercial real estate. Rather than waiting for ideal capital market conditions, many occupiers are moving forward when strategic business needs justify expansion, relocation, or investment.
Beyond market activity, SIOR chapters continue providing members with opportunities to share expertise and strengthen professional relationships.
The Alabama Chapter recently gathered in New Orleans for programming featuring economists from Tulane University and leadership from the Port of New Orleans, offering members insights into regional economic and logistics trends. The chapter will continue those conversations during its September meeting in Fairhope, Alabama.
Meanwhile, the Ohio Chapter hosted a well-attended event at the Rock & Roll Hall of Fame in Cleveland featuring a panel discussion on the redevelopment of the city's 500-acre Lake Erie waterfront. The chapter also recognized future industry leaders through scholarships supporting students pursuing careers in commercial real estate.
If the first half of 2026 has revealed anything, it is that competitive advantage in commercial real estate is increasingly being determined long before a lease is signed or a transaction closes.
Markets capable of delivering reliable infrastructure, predictable regulatory environments, and long-term economic confidence are separating themselves from competitors. At the same time, demand generated by advanced manufacturing, logistics, and data centers continues to reshape where capital flows and how developers evaluate new opportunities.
While each region faces unique challenges, the experiences shared by SIOR members across Washington, Alabama, and Ohio point to a common conclusion: the fundamentals driving commercial real estate are becoming more localized, more infrastructure-dependent, and more strategic than ever before.
As the industry turns its attention toward the second half of the year, SIOR members will continue these conversations at chapter meetings and national events, including the SIOR Fall Event this October in New York City. These gatherings provide members with valuable opportunities to exchange market intelligence, explore emerging trends and strengthen the relationships that continue to distinguish SIOR professionals across North America.