Artificial intelligence, digital infrastructure and private credit are emerging as some of the most powerful forces reshaping U.S. real estate investment activity in 2026, according to a new midyear outlook from PwC.
In its report, Real Estate and Real Assets: U.S. Deals 2026 Midyear Outlook, PwC argues that the industry is no longer experiencing a traditional cyclical recovery. Instead, capital is undergoing a structural rotation away from challenged legacy property sectors and toward operationally intensive, infrastructure-oriented assets that benefit from long-term secular demand trends.
The report identifies data centers, logistics facilities, senior housing, renewable energy infrastructure, student housing and residential rental platforms among the sectors attracting the greatest investor interest.
“U.S. real estate deal activity in 2026 is no longer defined by a traditional cyclical recovery,” PwC wrote in the report. “Instead, it is being reshaped by structural capital rotation, infrastructure convergence, and the growing influence of AI-enabled operating models.”
According to PwC, investors increasingly are evaluating acquisitions not simply as real estate assets, but as integrated operating and infrastructure platforms where technology, scalability, operational sophistication and access to capital play an outsized role in valuation and long-term performance.
That shift is altering how transactions are sourced, underwritten and financed.
PwC said buyers, lenders and institutional investors are placing greater emphasis on a property’s AI readiness, including its data architecture, workflow automation capabilities, operational reporting systems and forecasting tools.
The firm noted that assets capable of supporting scalable operating models, dynamic pricing strategies and integrated technology platforms are increasingly commanding valuation premiums. Meanwhile, properties lacking operational flexibility or a clear technology roadmap face longer due-diligence periods, reduced financing availability and increased valuation pressure.
The trend is particularly visible across sectors where operational performance directly affects margins and occupancy, including senior housing, logistics and residential platforms.
The growing role of AI comes as the commercial real estate industry faces mounting infrastructure challenges.
PwC highlighted power availability as a critical issue for data-center developers and investors as demand for AI computing capacity continues to expand. Access to electricity and supporting infrastructure has become a key factor determining whether projects can proceed and how assets are valued.
At the same time, refinancing pressures continue to weigh on portions of the office and retail sectors.
According to PwC, assets facing declining demand fundamentals, significant capital expenditure requirements or weaker leasing outlooks remain under pressure, creating an increasingly bifurcated market between favored and challenged property types.
The report also points to a resurgence in public-to-private real estate investment trust transactions.
PwC cited data from S&P Global Market Intelligence showing that U.S. equity REITs entered 2026 trading at a median 16.2% discount to net asset value, creating opportunities for consolidation, strategic asset sales and take-private transactions.
“Persistent discounts to net asset value across many mid-cap REITs, combined with growing concentration among the largest listed platforms, are creating opportunities for consolidation and strategic repositioning,” the report stated.
The financing environment is also evolving rapidly.
As traditional banks remain selective lenders, private credit funds, insurance companies and pension investors are playing an increasingly important role in supporting acquisitions, recapitalizations and refinancings. PwC noted that structured financing solutions, preferred equity and hybrid capital structures have become essential tools in many transactions.
The firm said buyers capable of delivering fully engineered and pre-arranged financing packages are gaining a competitive advantage as certainty of execution becomes increasingly important in deal negotiations.
Cross-border investment trends also are becoming more targeted.
PwC reported that while inbound foreign investment into U.S. real estate remains selective, American investors are increasing allocations to markets such as the United Kingdom, Germany and the Nordic region, particularly in digital infrastructure, renewable energy and residential-oriented sectors.
The report cites Apollo Global Management’s acquisition of STACK Infrastructure as an example of institutional demand for scalable, infrastructure-oriented real asset platforms aligned with long-term technology and demographic trends.
Looking ahead, PwC expects investment activity to continue improving throughout the remainder of the year, particularly in sectors benefiting from infrastructure demand and operational scalability.
“We expect transaction activity to continue improving through the second half of 2026, particularly across operationally intensive and infrastructure-adjacent sectors,” said Tim Bodner, PwC U.S. Real Estate Deals Leader, in the report.
According to PwC, the defining theme for real estate investors may be the continued convergence of real estate, infrastructure and technology.
The firm concluded that power availability, digital infrastructure, operational transparency and AI-enabled operating capabilities are becoming increasingly important determinants of valuation and transaction success.
As a result, investors are expected to continue directing capital toward platforms capable of combining physical assets, technology and operational expertise into scalable businesses capable of generating long-term growth.
For an industry long defined by location and physical assets, PwC’s outlook suggests the next phase of value creation may increasingly be driven by data, infrastructure and operating performance.
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