Jones Lang LaSalle's latest report indicates that 2026 is a critical period for a structural transformation in the global commercial real estate market. Growth expectations for major global economies are trending optimistic, with easing trade tensions, stabilizing inflation, and declining interest rates creating a more stable macroeconomic environment. For the Chinese market, the resilience of its economic fundamentals and the imperative for high-quality development lay a solid foundation for the long-term value of commercial real estate. Notably, China's continuous breakthroughs in technological innovation, coupled with its vast and efficient supply chain system, are injecting new momentum into the domestic and overseas business expansion and spatial requirements of Chinese enterprises. Globally, persistently high costs for construction raw materials, labor, and financing are forcing a strategic cost restructuring across the industry. JLL's research shows that 72% of corporate real estate executives rank "cost control and budget efficiency" as their top priority for 2026. The solution lies in proactive management, with companies needing to focus on three key areas: meticulous budget review, optimization of space utilization, and digitization of operational processes. For property owners, this means enhancing asset returns through preventative maintenance and precise capital expenditure planning. For tenants, it necessitates a rigorous review of operational expenses and flexible adjustments to real estate portfolios to align with business needs. Technology is emerging as a key enabling lever; automation and digital solutions hold significant potential for cost reduction but require careful consideration of their impact on employee experience and productivity. From a global perspective, economic uncertainty and high construction costs are suppressing new development activity. In major markets like North America and Europe, new supply across several asset classes is expected to contract further in 2026, making the shortage of premium office and logistics space more pronounced and leading tenants to face limited choices and rising rental costs. However, the situation in the Chinese market differs, as the commercial real estate sector in most cities remains at a high level of new supply. Concurrently, the demand for upgrading existing properties is becoming increasingly prominent. Against the backdrop of urban renewal, a large number of older buildings are struggling to meet the requirements of modern office and consumer experiences. Effectively promoting their renovation and functional enhancement is becoming a new challenge for market participants, while also presenting new opportunities. Among these, energy efficiency retrofits represent a practical choice. Global research indicates that, if timed appropriately and executed effectively, such projects can potentially increase asset value by over 55%. In China, this is becoming an important direction for asset optimization and urban renewal at the district level. By 2026, people are no longer paying just for "space," but for the "experience" they gain within it. Buildings or locations that fail to provide a positive experience will see their appeal diminish rapidly, and their asset value will suffer. This trend is becoming increasingly evident in the Chinese market. For instance, in the office market, companies are actively optimizing their spaces to attract and retain talent. From adding greenery and providing flexible workstations and focus pods to introducing high-quality coffee services, these investments in enhancing the experience have become new standards for measuring workplace competitiveness. JLL survey data shows that when employees rate their office experience highly, 84% express a more positive attitude toward working on-site. Consequently, asset location strategies are also evolving. "Lifestyle locations" that integrate into the surrounding neighborhood life, offer convenient amenities, and boast a pleasant environment are gaining more favor. JLL research indicates that office buildings situated in such vibrant neighborhoods can command significant rental premiums. For owners and operators, the ability to create an environment where people want to stay, that fosters interaction and is pleasant, is becoming a key determinant of long-term asset value. This research reveals that while over 90% of real estate enterprises have initiated AI pilot projects, fewer than 5% have achieved their primary objectives. The challenge for the commercial real estate industry in 2026 lies in integrating disparate pilots into sustainable, scalable applications. The core constraint is not the technology itself, but insufficient implementation foundations: such as a lack of high-quality data support, absence of change management pathways, and a shortage of talent skilled in both business and data. This results in numerous projects stalling at the experimental stage, unable to produce quantifiable business returns. In an environment of market caution and constrained budgets, companies need to focus limited resources on scenarios with solid data foundations, clear business pain points, and the potential for rapid value verification, adopting a pragmatic approach to technology implementation. The relationship between real estate and energy is shifting from simple consumption to deep integration. Stable, clean power supply is becoming a core competency rivaling location advantages. In markets with high electricity costs, improving energy efficiency will deliver significant value growth for assets. Although China is not generally a market with exorbitant electricity prices, the drivers for integration are equally strong. High energy-consuming industries like AI computing and data centers place extremely high demands on power stability; the "dual carbon" goals and ESG compliance requirements are pushing owners and tenants to actively deploy distributed energy solutions such as rooftop solar PV and energy storage. This is not only about hedging future risks but also about shaping the asset's green credentials and long-term competitiveness. Assets capable of integrating energy solutions can see their revenue potential increase by 25% to 50% compared to rental income alone. The field of commercial real estate investment is evolving from being dominated by specialized institutions toward greater diversification. Globally, regulatory changes and empowerment by new technologies are lowering investment barriers. For example, the UK's Mansion House Accord and recent executive orders in the US—allowing 401(k) plans to include private real estate funds as investment targets—are introducing long-term capital such as retirement savings into the market; simultaneously, the mature application of technologies like blockchain enables high-value properties to be subdivided and traded in forms such as digital tokens, effectively lowering the threshold for individual investments and allowing a broader investor base to participate. In the Chinese market, investment activity in 2025 presented a picture of coexisting caution and divergence. Institutional investors remained观望观望观望观望观望观望 (on the sidelines) against the backdrop of overall asset price adjustments, but certain asset classes demonstrated relative resilience—retail properties with stable cash flows and assets like long-term rental apartments benefiting from policy support garnered sustained attention, while core-location office buildings maintained a degree of investment热度热度热度热度热度热度 (heat). Meanwhile, long-term capital such as insurance funds and family offices are becoming increasingly important participants. Notably, investor focus is shifting from new construction projects to the upgrading and renovation of existing properties. Taking cities like Shanghai as an example, with the clarification of "commercial-to-residential" conversion policies, functionally repurposing older commercial projects is becoming a new investment direction. The global commercial real estate market is returning to an examination of the intrinsic nature of assets. For investors, this means shifting from a sole focus on asset scale to a focus on asset quality. Assets capable of enhancing efficiency through meticulous operations, increasing tenant stickiness through space optimization, and creating sustainable value through energy management will demonstrate greater resilience during market adjustments. For corporations, real estate decision-making is becoming more pragmatic. Choosing office space is no longer just a cost consideration but an extension of talent strategy. Employee demands for the work environment are becoming increasingly specific—ranging from healthy, environmentally friendly hardware conditions to flexible, efficient collaborative spaces, and convenient amenities integrated into the community. Spaces that can meet these demands are becoming crucial chips for companies to attract and retain talent.