From National Outlook to Local Reality: My Five Key Takeaways

National outlooks are useful, but they can feel distant. Instead of summarizing the full 2026 United States Outlook, here are five things that stood out to me for Northern Ohio real estate markets.

1. Who isn’t a data center developer?

In all honesty, data center activity is not slowing in 2026. AI is now a meaningful driver of economic growth, and its real estate impact is very physical. Power, land, cooling, fiber, and logistics are the gating factors. Persistent power constraints in primary markets are pushing activity into secondary and tertiary regions. That matters for Northern Ohio. Infrastructure, industrial land, and cooperative development environments are becoming competitive advantages again.

On the ground here: there’s a ton of caution and some concern as it relates to data center development. I’d encourage stakeholders to keep an open mind about the financial benefits and broad economic impact benefits large capital investment projects can bring to a community.

2. Industrial demand is holding up nationally, and our market is proof.

Nationally, industrial demand surprised to the upside late in 2025, while new construction is slowing meaningfully over the next few years. That is a healthy setup. Locally, Cleveland’s industrial market continues to show steady tenant demand, limited new supply, and a growing focus on renewal economics and build-to-suit opportunities. When national trends and local fundamentals align, it reinforces a simple point: well-located industrial assets in Northern Ohio remain highly relevant.

On the ground here: We’re all struggling with high cost of construction and the difficulty in getting spec industrial projects built. If construction costs, debt structures and incentives can align, it can be done.

3. Office isn’t back, but it is becoming clearer.

Office demand is stabilizing, but selectively. High-quality space is performing. Older, uncompetitive products need a real plan, whether that is reinvestment, conversion, or patience. Tenants are using space as a culture and retention tool, not just a cost decision. The middle is thinning, and clarity is replacing uncertainty.

On the ground here: We’re having great success with landlords that build out spec suites.

4. Capital is moving again, but with discipline.

Debt markets are improving, pricing has largely reset, and investors are cautiously re-engaging. This is not a buy-everything cycle. It favors local market knowledge, repositioning and recapitalization strategies, and fundamentals over narratives. For markets like Northern Ohio, that creates opportunity for those who understand their assets and their submarkets.

On the ground here: The recent sale of a quality apartment building in Lakewood is a good example of pricing clarity returning. Well-located, well-operated assets are trading again when buyer and seller expectations are aligned, even if the deal volume isn’t back to peak levels yet.

5. Preparedness keeps showing up as the differentiator.

Uncertainty hasn’t disappeared, which means speed and clarity matter more. The groups that invested early in readiness of sites, buildings, and capital are the ones able to act while others are still getting organized.

One unrelated note I’m excited about:

Last week we kicked off our newest classes as part of CRESCO Academy, including a 12-week AI training program focused specifically on commercial real estate. We’re having fun with it. We’re trying tools, breaking things, comparing notes, and learning what actually saves time, sharpens judgment, and improves how we serve our clients. We’re not getting lost in the AI hype. We’re focused on putting tools to work. This isn’t about replacing expertise. It’s about augmenting it. More to come soon on our progress!

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