SPRING EDITION 2026 NO.1 I VOL 85 THE INDUSTRIAL AND OFFICE MAGAZINE Robotaxis: The Impact On CRE Data Center Download: Best Practices From The Field New Factors Complicate Office Flight to Quality NEW AI WORLD MODERN BROKERAGE MODELS IN THE INSIDE
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VOLUME 85, ISSUE 1, SPRING EDITION 2026 FIND US ON SOCIAL MEDIA /company/sior /siormedia @siorglobal /siorglobal @siorglobal SIOR Report Editorial Team Nyequai Harte Editor in Chief Madelyn Hip Content Editor If interested in advertising please contact SIOR at media@sior.com. SIOR Global Officers Saadia Sheikh, SIOR President Aaron Barnard, SIOR President-elect David Smolensky, SIOR Vice President Scott Savacool, SIOR Treasurer Mike Ohmes, SIOR Immediate Past President Tripp Guin, SIOR Speaker of the CLC Editorial Advisory Board Jim Baker, SIOR Adam Collins, SIOR Nancy Dupps, SIOR Iain Finnegan, SIOR Casey Flannery, Member Associate Todd Hamilton, SIOR Pete Katz, SIOR Stephen Kozarits, SIOR Michael Maroon, SIOR Christopher Masino, SIOR Russell Patterson, SIOR Grant Pruitt, SIOR Tobias Schultheiß, SIOR AJ Thoma, SIOR Landon Williams, SIOR SIOR Report feels that the information contained in this publication is accurate. However, the information is not guaranteed and the Society of Industrial and Office Realtors® (SIOR) does not assume any liability or responsibility for any damages, real or imagined, resulting from inaccurate or erroneous information. Views expressed are not necessarily those of SIOR. SIOR Report, a publication of the Society of Industrial and Office Realtors® (ISSN: 1067-4764) is published quarterly (March, June, September, December) by the Society of Industrial and Office Realtors® of the National Association of Realtors®, 1307 New York Ave., NW, Suite 703, Washington, DC, 20005. www.sior.com. SIOR Report magazine is a benefit of SIOR Membership. The member rate for additional subscriptions is $35.00. Non-member yearly subscriptions are $45.00 (U.S.) and $55.00 (International). Advertising and subscription fees are not considered charitable contributions. Periodical postage is paid at Washington, DC, and additional mailing offices. POSTMASTER: Send address changes to SIOR Report, Society of Industrial and Office Realtors®, at 1307 New York Ave., NW, Suite 703, Washington, DC 20005. Copyright® 2026 Society of Industrial and Office Realtors®. No part of this publication may be reproduced in whole or in part without written permission. Chapter News Direct all Chapter News items and event descriptions to Kelly Miller, Executive Vice President, Member Experience at kmiller@sior.com. Contact Changes If your contact information has or is changing, please contact Howard Hurey, Membership Data Specialist at hhurey@sior.com. Reprints & Permissions For permission to reprint material from SIOR Report, send a written request indicating material and issue date to media@sior.com. Statement of Ownership, Management, and Circulation (All Periodicals Publications Except Requester Publications) Extent and Nature of Circulation No. Copies of Single Issue Published Nearest to Filing Date: a. Total Number of Copies (Net Press Run): 8300 b. Paid and/or Requested Circulation (By Mail and Outside the Mail) b(1) Mailed Outside-County Paid Subscription Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser's proof copies and exchange copies): 8155 b(2) Mailed In-County Subscriptions Stated on PS Form 3541 (Include advertisers proof and exchanged copies): 0. b(3) Paid Distribution Outside the Mail including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS®: 0. b(4) Paid Distribution by Other Classes of Mail Through USPS (E.G. First-Class Mail ®): 2. c. Total Paid Distribution (Sum of 15b. (1), (2), (3), and (4): 8157. d. Free or Nominal Rate Distribution (By Mail and Outside the Mail) d(1) Free or Nominal Rate Outside-County Copies included on PS Form 3541: 0 d(2) Free or Nominal Rate In-Country Copies Included on PS Form 3541: 0 d(3) Free or Nominal Rate Copies Mailed at Other Classes Through USPS (e.g. First-Class Mail): 143 d(4) Total Free or Nominal Rate Distribution Outside the Mail (Carriers or other means): 0 e. Total Free or Nominal Rate Distribution (Sum of 15d. (1), (2), (3), and (4): 143 f. Total Distribution (Sum of 15c. and 15e.): 8300 g. Copies not Distributed (See Instructions to Publishers #4 (page 3)): 0 h. Total (Sum of 15f. and 15e.): 8300 i. Percent Paid (15c. divided by 15f. times 100): 98 percent 15. Publication of Statement of Ownership Publication required. For a complete list of the 2025-2026 Board of DIrectors, visit sior.com/leadership
A MESSAGE FROM THE PRESIDENT SPRING 2026 Saadia Sheikh, SIOR SIOR Global President Powersense New York, N.Y. Saadia Sheikh, SIOR SIOR Global President saadia@powersense.co SIOR is stepping boldly into 2026. Just a few months into the year, I’m already inspired by the momentum, ingenuity, and collaboration taking place across our organization. Serving as Global President has been an incredible honor, and every interaction with our members — whether in chapter meetings, virtual conversations, or site visits — reminds me why this community is so exceptional. Our strength lies not only in our expertise but in the generosity with which we uplift one another and embrace what comes next. This year, SIOR continues to broaden its global footprint and deepen its impact. We’ll feel that energy firsthand April 14–17 when we gather in Palm Springs for our 2026 Spring Event. The program will spotlight top performers and feature conversations led by the industry’s true headliners. From start to finish, it will be a meeting shaped by closers who set the tone and deliver exceptional results. And this summer, we’ll gather again at the SIOR International Conference in Lisbon, June 24–26, as we continue to expand opportunities for connection with our members around the world. Fittingly, this issue of the SIOR Report is our tech edition, exploring the innovations reshaping how we work and serve our clients. Inside, you’ll find insights on modern brokerage models, the rise of flexible industrial space, and the potential of augmented reality for site tours. These tools are accelerating decision-making, raising expectations, and helping our members deliver exceptional value in a rapidly changing market. I encourage you to dive in and explore the forward-looking perspectives throughout these pages. It is a privilege to serve as SIOR’s Global President, and I’m energized by what we will accomplish together in the months ahead. Here’s to an innovative, impactful, and truly global year for SIOR. Warmly, ii | SIOR Report
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FEATURED ARTICLES 4 TECHNOLOGY & INNOVATION ROBOTAXIS: THEIR IMPACT ON CRE 8 BUSINESS PRACTICES CRE MARKETING: SELECTING THE BEST TACTICS AND TOOLS 12 SOCIETAL & ENVIRONMENTAL THE CASE FOR SUSTAINABLE BUILDING RETROFITS HAS NEVER BEEN STRONGER 16 MARKET TRENDS CANADIAN CRE DEAL- MAKING: WHAT GLOBAL ADVISORS NEED TO KNOW 18 TECHNOLOGY & INNOVATION DATA CENTER DOWNLOAD: BEST PRACTICES FROM THE FIELD 22 BUSINESS PRACTICES MODERN BROKERAGE MODELS IN THE NEW AI WORLD TABLE OF CONTENTS No. 1 | Vol. 85 28 I&O NEW FACTORS COMPLICATE OFFICE FLIGHT TO QUALITY 30 MARKET TRENDS FOLLOW THE MONEY: FRENCH COMMERCIAL REAL ESTATE 32 I&O CHALLENGING INDUSTRIAL MARKET: FLEXIBILITY KEY TO LEASING SUCCESS ISSUE THEME TECH & INNOVATION IN CRE 2026 is shaping up to be a transformative year for commercial real estate, driven by advances in technology, data analytics, and innovative business models. This issue explores how emerging tech is reshaping leasing, investment, and workplace strategy, while highlighting opportunities for leveraging innovation, enhancing operational efficiency, and staying ahead in an increasingly digital CRE landscape. CRE Marketing: Selecting the Best Tactics and Tools | p. 8
COLUMNS HEADQUARTER HIGHLIGHTS DEAL CENTER 36 Plain Speaking from a Lawyer 48 The Advocacy Brief 39 A Look at Leasing and Contracts 42 Chapter News 48 New Members 50 Legacy Circle 52 SIOR Foundation 56 What's the Big Deal? 60 Behind the Deal 62 The Real Deal Follow the Money: French Commercial Real Estate | p. 30 Canadian CRE Deal-Making: What Global Advisors Need to Know| p. 16 Data Center Download: Best Practices from the Field | p. 18 The Case for Sustainable Building Retrofits Has Never Been Stronger | p. 12 New Factors Complicate Office Flight to Quality | p. 28 Modern Brokerage Models in the New AI world | p. 22 Challenging Industrial Market | p. 32 Robotaxis: Their impact on CRE | p. 4
ROBOTAXIS: THEIR IMPACT ON CRE By Steve Lewis | Sponsored By TECHNOLOGY & INNOVATION 4 | SIOR Report
If you’ve been to San Francsico, Los Angeles, Atlanta, Austin, or Phoenix lately, you’ve no doubt seen some vehicles driving through these cities with strange structures on their roofs. You’ve probably also noticed they have passengers, but no drivers! Robotaxis, as they have come to be called, will soon be coming to a city near you — and your real estate market. And experts agree they will have a profound effect on design strategies, land use, and other key market factors. For example, say observers, robotaxis will drastically reduce the need for parking, reshape urban design, and influence demand across office, retail, and industrial sectors. When it comes to parking structures, they foresee: • Repurposing garages and lots: As vehicle ownership declines, parking lots and multi-story garages will become obsolete, freeing up valuable land for residential units, retail stores, or green space. • Optimized parking: Autonomous vehicles can be stored much more efficiently, either by "platooning" at off-site parking hubs or by using automated parking garages that can fit 50% more cars in the same footprint. This also frees up urban space. • Redesigning buildings: New commercial buildings will require significantly less on-site parking, so ground-floor space could potentially be used for retail or other amenities. “I have clients today that are already working on design elements and structural layouts of planned parking garages anticipating that they will need to be repurposed into other [functions] such as future office space or residential space, given the anticipation that much of the commuting workforce is going to shift their habits from commuting in owned vehicles to relying on Robotaxis to get to the office,” says Christopher D. Bell, SIOR, managing broker with NAIBlack in Spokane, Wash. “This phenomenon is coming faster than we think.” He adds that parking structures with sloped floors and ramps “are going to prove to be challenging to repurpose.” Why is he so sure this trend will develop so quickly? He notes that Waymo (a pioneer of Robotaxis) has publicly reported that it had completed 10 million paid robotaxi rides as of May 2025. Additionally, they reported providing more than 250,000 paid rides per week across their operating markets. Top Chinese Robotaxi service, Apollo Go (run by Baidu), had completed 17 million total rides as of Oct. 31, 2025. MAJOR IMPACT ON OFFICES Real estate experts also predict that the advent of robotaxi growth will lead to significant changes in office markets. These will include: • Broader commute radius: As commuting becomes more efficient and less stressful, employees will be willing to live farther from the office, potentially decreasing demand for CBD office space and increasing the appeal of suburban and exurban areas. • Focus on quality over quantity: Robotaxis may accelerate the trend suggested by some that overall office space demand will decrease as companies adopt hybrid work models. New on-the-go economy: With occupants freed from driving, vehicles will become "mobile offices" or "third spaces" where people can work during their commute. The third bullet point certainly rings true with Bell. “Everyone has seen the ‘Million Dollar Listing Los Angeles’ Altman Brothers Sprinter Van, where they are driven around the LA market by their assistant,” he shares. “I love that deal-making van! Imagine a day when your office is that Sprinter Van, but you don’t have rely on your assistant to drive you around. Productivity (listing appointments) will skyrocket.” Bell lives and works in a tertiary market, where he has listings that may require a three hour commute each way for one hour showing. “Today, I have to really think hard if I should take that listing and risk burning a whole day of productivity to show one property,” he says. “When I have access to a Robotaxi that is set up as a full mobile office, I won’t hesitate because it will be just another day at the office as I commute between listing appointments, showing appointments, and deal closing dinners.” He also agrees that robotaxis will allow people to push even farther away from core employment centers “when they can plug in the minute that they enter their autonomous vehicle.” As we know, however, all markets are not created “equal,” and Faraz Cheema, SIOR, managing director — Manhattan Office Capital Markets, BKREA, in New York City, doesn’t think these predictions will hold true in Manhattan. “First, people here are already used to mass transit,” he says. “They’ll do 10,000 steps a day, and/ or take the subway. And most people take the Long Island Railroad every day, and you can do your work there. I’ve also done Spring 2026 | 5
"FOR ACTIVE INVESTMENTS, UNDERUSED CAR PARKING OR OUTOF-FAVOR INNER SUBURBS COULD OFFER VALUE ADD OPPORTUNITIES FOR REPOSITIONING." a lot of Ubers, where I do as many calls as I can; it would be no better in a Robotaxi.” His second point, he continues, is that “there’s an issue with robotaxis in this city. For Washington, D.C., people obey traffic laws, but in New York City, forget it. How will you get around people jaywalking, etc.? There’s already an uproar.” But in a recent article in Real Estate Research entitled “Autonomous Vehicles — Impact on Real Estate,” authors from DWS note that CBD offices at the heart of cities with a dominant, public transportfocused core, could… do relatively well. “In cities such as London, we continue to believe that office requirements will be heavily focused around major transport nodes, as improved public realm and increased access to employees elevate occupier demand. However, in polycentric cities like Phoenix, suburban offices may gain in favor,” they wrote. They add that with the relative draw of the CBD reducing, campus style locations may gain from being able to draw employees from a wider catchment. “For active investments, underused car parking or out-of-favor inner suburbs could offer value add opportunities for repositioning,” says DWS. “Finally, valueadd strategies may look to develop real estate assets directly supported by the rollout of AVs, from fleet service hubs, EV charging stations or large-scale edge-of-town parking to store AVs during off-peak hours.” Cheema does agree that in suburban markets robotaxis could have a positive impact, but he remains skeptical about CBD impact — and the trend towards hybrid offices. “Most lease activity in big companies pushes you into the office five days a week — especially in the finance industry,” he says. “I can see [an impact] in suburban Jersey, or Connecticut.” INDUSTRIAL, LOGISTICS GROWTH SEEN Experts also believe that Robotaxis will drive significant growth and change in the industrial real estate sector. Those changes include: • Increased demand for distribution hubs: The expansion of last-mile delivery, enabled by autonomous vehicles, will increase demand for industrial properties located near urban centers. • Automation of logistics: Autonomous vehicles can make middle- and lastmile logistics more accurate and efficient by providing real-time data on product locations. This allows retailers to meet consumer demands for faster, cheaper delivery. Finally, Uber CEO Dara Khosrowshahi recently cited a further connection between CRE and Robotaxis that many may not have thought of: That CRE could, in part, be a key to the success of Robotaxis. How is that possible? Because, he posits, the real estate industry might actually hold the answer to this key question: Who will own and pay for the Robotaxis? "You're going to have financial owners that own big fleets of cars that are on our network," Khosrowshahi told participants in a summit hosted by the “All-In” podcast. "All of these cars are going to be financeable.” He cited the example of hotels of major brands, which are typically owned by REITs, and not the chains themselves. A decade from now, he predicted, some real estate investors could play a similar role for companies that use lots of selfdriving vehicles. MEET THE AUTHOR Steve Lewis is a freelance writer and president of Wordman Inc. He can be contacted at wordmansteve@gmail.com. Promoting and sponsoring initiatives that educate, enhance, and expand the commercial real estate community. The SIOR Foundation is a 501(c)(3) not-forprofit organization. All contributions are tax deductible to the extent of the law. CONTRIBUTING MEMBERS Christopher D. Bell, SIOR Faraz Cheema, SIOR 6 | SIOR Report
BUSINESS PRACTICES 8 | SIOR Report
CRE MARKETING Selecting the Best Tactics and Tools BY RACHEL ANTMAN SPONSORED BY Spring 2026 | 9
CRE marketing is easier — and harder — than ever. Easier because there are so many tools and technologies available. Harder because the abundance of choices can seem overwhelming. Fortunately, guidance is at hand: from brokers who have enjoyed success in marketing for themselves, their companies, and their clients’ properties. WHITTLING DOWN THE OPTIONS The options in today’s marketing toolkit range from more traditional methods, such as signage, online listings, and email alerts, to newer methods including drone and video content, social media campaigns, and virtual tours. One way to whittle down the options is to emulate Bridget Richards, SIOR, principal at BRAND Real Estate in Las Vegas. She and her team start every marketing effort by assessing the problem to be solved and determining where the target audience pays attention. Once this initial analysis is complete, Richards, who runs a CRE-centric marketing company in addition to working as a broker and developer, employs a simple decision framework to determine the right tools: If the story is visual, use video, drone footage, or immersive tours. (She points out that for office or medical developments, the story lives in the design, construction quality, and future state of the asset.) If the story is educational, use carousels, digests, and founder-voice writing. (Richards often publishes explainers on topics like TI, renewals versus relocations, and the benefits of tenant representation.) If the story is about credibility, use proof-driven formats. (These include testimonials, deal breakdowns, advisory essays, and curated market insights.) If the goal is speed, use AI-supported tools. (Examples include intake forms, site selection matrices, LOI comparison tables, summary decks, and tour book language.) Like Richards, Andrew Cheney, SIOR, principal of Coppola-Cheney in Phoenix, chooses different tools for each assignment. He highlights an example of a one-million-square-foot Class-A office tour, which would “warrant spending money on a drone, website, sizzle video, Instagram page, etc.” Another way to whittle down options is to find out what specific products and services other brokers like. Brian Mulvaney, SIOR, senior vice president and partner at Voit Real Estate Services/ Mulvaney Commercial Alliance in La Jolla, California, is an excellent source of recommendations: His team uses both traditional CRE resources and additional technology, much of which is AI-enabled. Based on extensive experience, he identifies CRE Launcher1 and Terrakotta2 as the most comprehensive and effective of the AI-enabled systems. Some brokerage teams adopt a morethe-merrier approach. Landon Williams, SIOR, executive vice president of investment sales at Commercial Advisors in Memphis, says that his team uses almost every marketing tool for every deal it’s selling. “All our marketing tools supplement each other,” he explains. “We never know which method of outreach will be the one to connect to any prospect.” CREATIVE EVENTS AND INITIATIVES Creative events and initiatives can further heighten visibility. Foundry Commercial in Nashville has had great success with them, reports Foundry vice president Casey Flannery, member associate. One example: a “Tapas and Tecovas” event for brokers, during which attendees enjoyed tapas and custom cocktails, toured a property virtually, and picked out a pair of Tecovas boots to take home. According to Foundry, the event showcased the unique amenities of the property while providing attendees with a memorable and immersive experience. Coppola-Cheney arranged a video crew to film a spoof of The Bachelor to highlight a premier listing and presented the fivepart series at a NAIOP awards banquet. As a result, “every broker in our market got to see our new spec suites and common areas we had delivered,” Cheney says. “The audience was entertained. Our owners looked good; our team looked good. And we leased the most square footage in our submarket during that multi-year assignment.” TRADITIONAL TECHNIQUES Although creative events and advanced technologies can significantly boost momentum, brokers shouldn’t neglect the basics. “Old-fashioned individual phone calls are still the most effective marketing tool for any deal we are selling,” says Williams. “While it is the least efficient method, investors appreciate it.” Paul Kluck, SIOR, first vice president of CBRE in Denver, advocates “pounding the pavement every day,” noting that brokers won’t build a reputation sitting behind their computers. In the 20 years that he taught the SIOR course “Building a Commercial Real Estate Business,” Kluck stressed the importance of in-person networking as a marketing tactic. That activity is one of the key ingredients in the marketing toolkit of Baker Commercial Real Estate in Sellersburg, Indiana. Firm president Jim Baker, SIOR, who has authored two books on commercial real estate and who describes himself as “old school,” says that he and his colleagues “work extra hard at networking in our 10 | SIOR Report
community and with other commercial real estate professionals by serving on boards, committees, and attending networking events.” QUALITY Strong content, whether online or printed, can both facilitate and support face-to-face interactions. “We invest in professional and drone photography because first impressions matter,” says Flannery. “High-quality visuals help elevate our listings and communicate the care behind them.” Cheney agrees: “They make the properties come to life and tell the best story possible.” When it comes to written materials, brokers should not neglect quality control -- proofreading for typos, errors in grammar or usage, and inaccuracies. Kluck frequently comes across listings with incorrect square footage. Such mistakes, which can be easily avoided with attention to detail, compromise the success of marketing programs. CONSISTENCY Consistency is important. As Flannery emphasizes, it builds trust. That is why she and her colleagues have spent years building a consistent brand presence. “When someone sees our posts, marketing materials, or our name, they know who we are,” she remarks. Other advocates of consistency include Richards and Mulvaney. “Build a repeatable system, not one-off posts,” Richards advises. And Mulvaney states that “consistency and discipline matter more than the platform itself: “The broker who uses a moderate tool consistently will outperform the broker who pays for a sophisticated system and rarely touches it.” GETTING STARTED So many tools to choose from, so little time. But marketing initiatives are well worth the effort for brokers who want to stand out from the crowd. Once they have identified their target audience and the messages they want to convey, they’re ready to select a set of marketing tools and launch a campaign or program. It may seem daunting at first, but the old cliché of “practice makes perfect” holds here, so follow the advice of Flannery: “Just jump in and do it.” 1.https://crelauncher.com/home-public?gad_ source=1&gad_campaignid=23287278400&gbraid=0A AAAAp1whHk_M-O2wC_J-DvTloSOMb1rD&gclid=CjwK CAiAraXJBhBJEiwAjz7MZasRDaR-2RgnKSNfzTQIoP9R D6icEkgHJ6FKXH7qJ7p1pPkRKNARIxoCjt4QAvD_BwE 2. https://www.terrakotta.ai "ALL OUR MARKETING TOOLS SUPPLEMENT EACH OTHER. WE NEVER KNOW WHICH METHOD OF OUTREACH WILL BE THE ONE TO CONNECT TO ANY PROSPECT." MEET THE AUTHOR Rachel Antman is a writer, public relations consultant, and founder of Saygency, LLC. Contact her at rachel@saygency.com. SPONSORED BY Promoting and sponsoring initiatives that educate, enhance, and expand the commercial real estate community. The SIOR Foundation is a 501(c)(3) not-forprofit organization. All contributions are tax deductible to the extent of the law. CONTRIBUTING MEMBERS Jim Baker, SIOR Brian Mulvaney, SIOR Casey Flannery Landon Williams, SIOR Andrew Cheney, SIOR Bridget Richards, SIOR Paul Kluck, SIOR Spring 2026 | 11
ENVIRONMENTAL & SUSTAINABILITY 12 | SIOR Report
THE CASE FOR SUSTAINABLE BUILDING RETROFITS HAS NEVER BEEN STRONGER Buildings use an enormous share of the world's resources, especially energy. In the case of U.S. commercial and residential buildings, their energy consumption is more than a third — 36.9% combined — of the nation's entire energy consumption as of 2023, according to the Energy Information Administration Such vast energy usage offers vast opportunities for sustainable building retrofits, according to industry experts. The effort to make buildings more efficient has been ongoing for decades,1 arguably since the energy crisis of the 1970s, but in light of climate change goals and the heightened awareness of sustainability, the pressure is on owners now more than ever to achieve higher levels of sustainability from their properties. THE PRESSURE IS ON TO RETROFIT Commercial property owners are being pressed on many sides to make building retrofits, according to Op2mize Energy CEO Geoffrey Kasselman, SIOR, so the question isn't whether they will, but how to do so with solid ROI and ESG goals in mind. “One factor is building codes, another is municipal mandates,” Kasselman says. “Then there are corporate mandates, or corporate culture, but also what workers want.” As energy codes (a subset of building codes) have been progressively revised, they have become more focused on energy efficiency, Kasselman says. Such code requirements can help reduce peak energy demand, as well as greenhouse gas emissions and other air pollutants. “To meet building codes, you will have to provide enough energy efficiency and BY DEES STRIBLING Spring 2026 | 13
environmental sensitivity retrofits to be in a position, should you choose to do so, to get at least LEED Silver designation,” Kasselman said, though he points out that building owners might choose not to spend the money to get a formal LEED designation even after retrofits. Beyond complying with updated codes, municipalities are pushing for sustainable retrofits, a trend that hasn’t changed despite the current de-emphasis at the federal level on sustainability as a tool against climate change, Kasselman said, though the terminology is shifting somewhat as planners now talk of sustainable development goals, or SDGs. “In some cities, such as San Francisco and Washington and many others, you have to report your energy efficiency and your carbon emissions by mandate, for all commercial buildings over a certain size,” Kasselman said. “Another thing is that the end users are requiring it, because they're a company with publicly stated energy and ESG goals.” That isn’t changing either. According to a 2025 survey2 of 70 corporate sustainability and ESG leaders at U.S. and multinational firms by the Conference Board, half of surveyed firms plan structural adjustments over the next two years to strengthen sustainability coordination and alignment, and most companies currently embedding sustainability into some processes but not enterprise-wide. Over the next two years, however, the respondents expect to integrate sustainability more deeply in such functions as finance, procurement, and risk management, the survey found. Finally, workers and their managers are more interested in sustainable workplaces than ever before, according to NAI Baltics CEO Valdis Ligers, SIOR, because they assign value to that. That is, they feel better about working in a building with sustainable features. “Investors start to understand that sustainability means something that makes your employees happy, which makes, in wider terms, all society around your property more happy,” Ligers said. “When this all comes together, even the most practical investors are starting costs, labor shortages, and tightening sustainability requirements.” Most ROI will be concentrated in lighting and HVAC systems, Kasselman notes, though deeper dives are possible, such as the installation of solar or geothermal or other renewable energy systems, which can offer significant ROI over long periods. “But if you're using other people's money, which is the vast majority of commercial real estate investment, through leverage and borrowing or equity partnership and traditional debt, your focus will be on the next three to five years,” Kasselman said. “When you do retrofits, about 90% of all your energy-efficiency gains will come from lighting retrofit and thermal load management, meaning HVAC,” he said. “Most current owners will leave the rest for the next owners.” Retrofits that cut energy use tend to pay for themselves over time, though how much and how fast depend on the kind of retrofit, according to a 2024 report3 by Stantec, an engineering, architecture, and environmental consultancy. Window upgrades, for instance, tend to offer almost immediate payback, and weatherstripping and LED fixture and HVAC control upgrades will pay for themselves in about two years. On the other hand, Stantec explains, roof upgrades have a six-year payback timeline. Cooling system replacements, rooftop solar PV and external shading installation tend to be even longer-term plays, with payback taking a decade at least, and in the case of shading, more than 20 years. AI will have a role to play in sustainable retrofits, according to Van Hoof. An example of a sustainable retrofit with multi-dimensional benefits is adding modern occupancy and indoor air-quality "Thoughtful retrofits – amplified by modern operational AI – create durable value far beyond the initial investment.” to think, I would like to live in that environment, too.” SUSTAINABLE RETROFITS VARY IN ROI IMPACT "It’s more critical than ever to demonstrate clear ROI on building improvements,” Willow Technology Corp. CEO Bert Van Hoof said. “Many owners are finding that cutting back on smart infrastructure is a false economy in a market defined by rising operating 14 | SIOR Report
MEET THE AUTHOR Dees Stribling is a veteran real estate and business journalist and travel writer based in metro Chicago. CONTRIBUTING SIOR Valdis Ligers, SIOR Geoffrey Kasselman, SIOR sensing to existing spaces and pairing it with an operational AI platform. “These sensors generate the real-time insight that buildings historically lacked, revealing how people actually use spaces, where ventilation is misaligned with demand, and where energy is being wasted,” Van Hoof noted. Operational AI goes well beyond spotting inefficiencies, highlighting emerging maintenance and performance drift issues before they escalate, pinpointing where retrofit investments will deliver the highest impact, and even finding available grants, rebates, or tax incentives. In retrofit scenarios, the ROI compounds, Van Hoof said, leading to lower energy and utility spending, improved indoor air quality and occupant comfort, extended equipment life, and a reduced maintenance burden. A more sustainable operational profile helps strengthen leasing, retention, and asset value. “Thoughtful retrofits – amplified by modern operational AI – create durable value far beyond the initial investment,” Van Hoof said. CYBER SECURITY: A KIND OF DIGITAL RETROFIT Not all property retrofits are physical. An important “retrofit,” especially in terms of avoiding sudden and potentially avoidable costs to building owners, involves ramping up cybersecurity. In corporate America, and worldwide, various kinds of cyberattacks are all too common, and often mean the payment of ransom to get digital systems up and running again – which in turn only encourages bad actors to keep attacking. The potential for cyberattacks against CRE grows as smart systems grow, such as those that integrate building systems, such as lighting, access control or life safety. Risks include ransomware against property management systems, cloud storage breaches that expose mortgage or other sensitive documents, or good old-fashioned phishing attacks against CRE personnel. Yet the commercial real estate industry lags when it comes to protecting itself against cyberattacks, Kasselman said. “The commercial real estate community is not adequately prepared for the bad actor cybersecurity risk that we face all day, every day,” he said. Part of the problem is that CRE usually lags when it comes to tech, but also that it isn’t always clear whose responsibility it is to defend against cyberattacks in a real estate context. “Is it the job of the landlord to provide adequate cybersecurity to the tenant, or tenant IT departments?” Kasselman said. “Or is it the job of the general contractor when they built the building? Is it the job of the municipality that reviewed and approved the building plans for that property? Or is it the local utility and the energy grid that services the property, or the Internet provider for the occupants of the building?” A few massive cyberattacks against CRE might help sort these questions out, but for now there is a lot of uncertainty, Kasselman said. Even so, the industry is learning, both from the example of attacks on other industries, and from unexpected sources, said Ligers, who is based in Latvia. One of the tools the Russian government is using to wage war against Ukraine is cyberattacks on physical assets. “We’re in NATO and in the EU, so we don’t feel as much pressure, of course, as Ukraine,” Ligers said. “But we’re definitely learning a lot from them about keeping data safe.” AI will have an increasing role to play in cybersecurity, Kasselman said, though it will be something of a race between those trying to protect CRE assets and those trying to attack them. Both will probably use AI more in the future, though it isn’t entirely clear how yet. “AI makes good things great and it makes bad things worse,” Kasselman said. “AI in the wrong hands could exponentially accelerate cyber security in the wrong direction, which makes it everybody's problem.” 1.https://www.eia.gov/tools/faqs/faq.php?id=86&t=1 2. https://corpgov.law.harvard.edu/2025/09/06/bestpractices-for-corporate-sustainability-teams/ 3. https://www.stantec.com/en/ideas/topic/buildings/ recalculating-roi-commercial-building-retrofit Spring 2026 | 15
For SIOR members advising multinational clients, Canada can appear — at first glance — to be a seamless extension of the U.S. market. The same global REITs deploy capital here. Many of the same institutional owners dominate industrial and office inventory. Even the terminology can feel interchangeable. Yet the moment a deal moves from concept to execution, the differences become clear. Canada’s commercial real estate environment is shaped by a unique blend of varying legal jurisdictions, bilingual documentation, institutional ownership culture, and deeply varied regional markets. These elements influence timelines, drafting structures, negotiation pacing, and even how “market practice” is defined. For cross-border SIORs, understanding these distinctions is more than a matter of professional curiosity. It is what allows advisors to forecast timelines accurately, avoid legal and operational missteps, and support clients as they expand into unfamiliar territory. Canada is an accessible and highly transparent market—but it requires its own informed approach. CANADA’S BI-JURAL FRAMEWORK: TWO LEGAL SYSTEMS, ONE NATIONAL MARKET One of the most consequential — and often underestimated — features of Canadian CRE is its dual legal system. Québec is governed by a civil law tradition rooted in the Civil Code of Québec, while the rest of the country operates under common law. In Québec’s civil law environment, the lease is a codified contractual relationship defined by statute. Obligations, remedies, and assignment rules are interpreted according to the Code—not precedent. Meanwhile, in common law provinces, a lease is understood primarily as the conveyance of an interest in property, and interpretation draws heavily on judicial decisions (jurisprudence). These two perspectives shape everything from drafting strategy to risk allocation. Take “good faith,” for example. In Québec, good faith is a robust, active duty that applies throughout the lifecycle of the lease — including negotiation, performance, and termination. It supersedes letter law. In common-law provinces, good faith is narrower, focused on ensuring parties do not mislead each other during performance. The two interpretations share a name but function differently. Advisors unfamiliar with this can misunderstand what a counterparty’s obligations truly are. Term limits also diverge. Québec caps lease terms at 100 years, and leases exceeding 40 years — including renewals — may trigger transfer duties. Ontario’s Planning Act introduces its CANADIAN CRE DEAL-MAKING: WHAT GLOBAL ADVISORS NEED TO KNOW BY ROBERT CRESSATY, SIOR MARKET TRENDS 16 | SIOR Report
own restrictions on long-term use. Assignment rights differ between systems as well; Québec’s default rules prevent a landlord from withholding consent without a serious reason, while common-law defaults give landlords wider latitude unless the lease states otherwise. Registration mechanics also vary between provinces. Canada’s bilingual framework adds another layer of nuance — most prominently in Québec. Commercial contracts there must be available in French, and while many negotiations take place in English, the French version must be legally equivalent. Translating a lease is not a mechanical exercise. Some civillaw concepts do not align perfectly with their common-law or English-language counterparts. A clause that seems straightforward in English may require deliberate reworking to ensure it carries identical meaning in French. URBAN MARKETS VS. TERTIARY MARKETS: TWO DIFFERENT REALITIES Regional variation in Canada is significant. Toronto, Vancouver, Montreal, and Calgary operate like global gateway cities: institutional landlords, modern inventory, reliable data, and professionalized processes. For SIORs accustomed to major U.S. markets, the experience is familiar. Beyond these metros, however, Canada’s tertiary and remote markets present different dynamics. Landlords may be long-standing local owners with portfolios built over decades. Inventory may be older or purpose-built. Municipal departments may be small, with timelines dependent on staff availability. Documentation conventions are less standardized, and negotiation styles are influenced heavily by local business culture. Canadian geography magnifies the importance of on-the-ground knowledge. A warehouse in Northern Ontario, an office in Atlantic Canada, or a distribution center in the Prairies may be governed by different expectations, zoning interpretations, and ownership philosophies than assets in the major metros. MUNICIPAL AUTONOMY: THE QUIET VARIABLE WITH MAJOR IMPACT Canadian municipalities wield considerable authority over zoning, permitting, land use, and development approvals. While provincial frameworks exist, local interpretation often governs actual implementation. Two municipalities in the same province may treat an industrial use differently; in some cases, even two boroughs within the same city may vary in approach. This significantly affects industrial tenants — particularly those requiring trucking access, outside storage, hazardous material handling, or unique operational layouts. A deal that appears viable from a leasing standpoint may stall during permitting if advisors have not mapped out municipal expectations early. For cross-border SIOR members, this is a key takeaway: in Canada, permitting is not an afterthought. It is integral to site selection and should run parallel to transaction/project planning. CROSS-BORDER COLLABORATION: A STRATEGIC ADVANTAGE For SIOR professionals, Canada offers tremendous opportunity for collaboration. Many advisors in the U.S. already support clients whose supply chains or operational footprints extend north. Others represent multinational occupiers seeking to expand across North America. In these situations, understanding Canada’s unique landscape strengthens client service—and partnering with Canadian experts ensures local nuances are managed effectively. The strongest cross-border outcomes occur when advisors integrate legal, operational, and municipal considerations alongside negotiations. Canada does not require a fundamentally different mindset — just an informed one. CONCLUSION Canada is transparent, stable, and highly professionalized, but it is also uniquely bilingual, bi-jural, and regionally diverse. For SIOR members working across borders, recognizing these distinctions creates a meaningful strategic advantage. When advisors align expectations with Canada’s legal framework, institutional pace, and municipal autonomy, transactions become smoother, timelines become predictable, and clients benefit from a process shaped by informed, collaborative expertise. With the right insight — and the right partnerships — Canada becomes not just another market, but a well-understood and navigable extension of a client’s global real estate strategy. MEET THE AUTHOR Robert Cressaty, SIOR, is Co-CEO and Managing Partner of Landmark Advisory Services, bringing over 25 years of experience in Canadian commercial real estate. He has worked across major markets on transactions ranging from industrial leases to national portfolios. With background in both landlord and tenant representation, he offers balanced strategic insight. Robert holds degrees from Concordia University and enjoys golf, hockey, and martial arts with his family in Montréal. Spring 2026 | 17
DATA CENTER DOWNLOAD BY MICHAEL HOBAN | SPONSORED BY Best Practices from the Field TECHNOLOGY & INNOVATION 18 | SIOR Report
Accelerated by the exponential growth of generative AI, demand for data centers has exploded, creating CRE's newest, most capital-intensive, and supply-constrained asset class. The numbers from CBRE’s 2025 North American Data Center Trends report1 bear this out: Primary market supply totaled a record 8,155 megawatts (MW) in H1 2025, up 43.4% year over year. Even with the substantial increase in inventory, primary market vacancy dropped to a record low of 1.6%, primarily driven by hyperscale and AI occupiers. Demand is far outpacing supply, so 74.3% of all under-construction capacity has already been preleased, driven by cloud and AI providers seeking to lock in future infrastructure amid power and land constraints. The extreme power requirements are one of the core challenges for data center development; S&P Global Ratings2 estimates that U.S. data center grid-power demand rose 22% in 2025, and will nearly triple by 2030. Power availability and infrastructure delivery timelines remain the most decisive factors shaping site selection, leasing activity, and pricing across all North American markets. To help SIORs gain a deeper understanding of the challenges this rapidly evolving asset class poses and to help brokers get deals done, SIOR hosted a session at the 2025 Fall Event in Louisville titled “Data Center Download: Best Practices from the Field.” Moderated by architect Frank Di Roma, regional vice president with CRE design firm Ware Malcomb, the panel included Jim Kerrigan, SIOR, founder and managing partner of North American Data Centers, representing brokerage; Todd Johnson, director of real estate development for general contractor Ryan Companies’ Mission Critical sector; and engineer Matthew Danowski, director of electrical engineering for Ware Malcomb. “The data center market is changing every single day,” said Danowski. “The rules are changing, the players are changing − and the critical issues change every day.” Danowski cited a pair of examples to illustrate the rapid pace of change in data center development — one positive and one negative. Until recently, hyperscale data centers (facilities or campuses ranging from 40 MW to hundreds of MW) required enormous amounts of water for cooling. According to the International Energy Agency,3 a typical 100-megawatt data center can use up to 2 million liters of water daily, roughly equivalent to the consumption of 6,500 households. “But in the last year, as direct-to-chip liquid cooling (DTC) has taken hold, the need for water has reset, and you can now do a 100% waterless data center, so that issue went right out the window,” he explained. On the downside, escalating AI demand is taking precedence over addressing emissions contributing to climate change. The lack of sufficient power where hyperscale data centers are being constructed has forced the “Big Five” (Microsoft, Amazon, Meta, Alphabet, and Apple) to pause their net-zero commitments as some are now using gas turbines to generate temporary onsite power to meet immediate needs and cover supply gaps. What Makes a Great Site? Factors such as a prime location near a large population center, power availability, and available land are cornerstones of any data center site, but Kerrigan said that finding a “great site” depends heavily on the utility company. “The utility has to sign off on it. If the utility company likes it, then I like it,” he affirmed, before adding, ”Just because you see high-voltage lines going through the site doesn’t mean they’re going to like it. There may not be power inside those lines. And the rules are different with every utility. It's a massive pain in (the neck). Even when you think you have it solved, the regional transmission organizations can come in and change the rules.” Johnson, speaking directly to the land sellers (and their brokers), said the secret to advancing a data center site is to “have a good power story. It’s hearsay, it’s past studies, it’s what the utility company says, it’s the utilities running over it, or, God willing, a substation next to it.” He suggests that, in addition to talking with other local brokers and developers, land sellers or their representatives should speak directly to the utilities, or more specifically, the person in charge of business development at the utility. The BD person typically has a deep understanding of the site and knows what studies have been conducted, how much power is available, and what needs to happen to get power to the site. “Don't have the 10-person phone call. Get on the phone with them one-on-one and ask, ‘What's going on with this site?” he advises. “You gather up that information, and literally, it's marketable, because unfortunately, it's the Wild West out there, and nothing is guaranteed until you sign a power electrical services agreement, and everybody knows that that comes a lot further down the line. So if you're looking for what the most important thing is, figure out your power story.” Beware the Land Speculators Kerrigan cautioned that the explosive growth of data centers has brought in an influx of new players to the market, noting that at a data center conference he had recently attended, there were 250 people who weren’t there the year before. “Right now, there's a whole slew of new data center ‘developers’ out there that are really land speculators, so all they're trying to do is to tie you up and Spring 2026 | 19
put it under contract,” he said, adding that often the new players are only interested in flipping the property for a significant profit. “So qualifying the right buyer is critical.” Johnson concurred, adding that brokers for land sellers need to know who the buyer is — who the broker is representing. “There's a very short list of people who are actually going to use the site as the data center, and there's even a shorter list of people who will turn it into a data center and lease it to those people,” he stressed. Community Opposition There has been considerable pushback from communities on data center development, and that pushback is accelerating. According to a report by Data Center Watch,4 which tracks grassroots opposition to large-scale data center projects across 28 U.S. states, at least 16 data center projects worth a combined $64 billion have been blocked or delayed by a growing wave of local, bipartisan opposition in the last two years. The watchdog group recognizes at least 142 activist groups across 24 states organizing to block data center construction and expansion. While the exact reasons opponents cite vary from location to location, some common themes include higher utility bills, water consumption, noise, impact on property values, and preservation of green space. The report calls data center development “the new NIMBY (Not In My Back Yard) flashpoint”: Even when communities are promised jobs and tax revenue, local residents often push back against data centers, blocking specific projects, advocating for restrictive zoning, or championing new regulations. “Our industry has done a terrible job of educating the public about (the benefits of data centers),” Kerrigan lamented. One of the issues the industry faces is that after the initial construction phase, there are few permanent jobs created by data centers. Johnson said that other than peripheral uses at a facility or campus, a data center needs about 50 employees across three shifts on an ongoing basis, with each additional building requiring around 20 more. He added that the industry is trying to sharpen its messaging on the positive aspects of data center development, including the low impact the centers have on traffic and school systems, as well as the tax revenues they generate. A recent report by the Ohio Chamber of Commerce Research Foundation5 found that through 2024, for every $1 Ohio provided in tax incentives, the state and local governments received about $2.10 in return − helping to push annual tax revenue from the industry from about $430 million in 2017 to more than $1 billion in 2024. The report also acknowledges potential drawbacks, cautioning that “rapid expansion will bring challenges, especially in energy demand and water use, requiring grid modernization and infrastructure upgrades.” Offering incentive packages for data center development is being hotly debated in state legislatures, with some increasing incentives while others are pausing incentives while they evaluate the costs versus benefits. Johnson anecdotally referenced a project he was recently involved in, noting that the municipality took in $8 million more in revenue than anticipated. Winning Over the Community Johnson stressed that overcoming community opposition requires early engagement and proactive communication. “You need to be extremely upfront and make yourself very available to (the community),” Johnson advised. His firm has learned the value of taking proactive measures, including creating project websites to combat misinformation and promote community benefits, while emphasizing the financial windfall and minimal disruption to residents' day-to-day lives. Genuine, personal outreach has also paid enormous dividends for his firm. Following an open house, one developer met with residents outside the town hall to address each individual’s concerns. The one-on-one, person-to-person engagement was integral to securing project approval. “If you like your community the way it is now, a data center is a great way to maintain and support it in these times where people are having increasing budget issues,” he concluded. 1.https://www.cbre.com/insights/reports/northamerica-data-center-trends-h1-2025 2. https://www.spglobal.com/commodity-insights/en/ news-research/latest-news/electric-power/101425data-center-grid-power-demand-to-rise-22-in-2025nearly-triple-by-2030 3. https://www.iea.org/reports/energy-and-ai 4. https://www.datacenterwatch.org/report 5. https://spectrumnews1.com/oh/columbus/ news/2025/10/04/data-centers-power-ohio-seconomy MEET THE AUTHOR Michael Hoban is a Boston-based commercial real estate and construction writer and founder of Hoban Communications, which provides media advisory services to CRE and AEC firms. Contact him at michaelhoban@comcast.net. SPONSORED BY Promoting and sponsoring initiatives that educate, enhance, and expand the commercial real estate community. The SIOR Foundation is a 501(c)(3) not-forprofit organization. All contributions are tax deductible to the extent of the law. 20 | SIOR Report
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