Consider two Class A office buildings in the same submarket. Similar construction quality, comparable locations, nearly identical asking rents. Yet one commands consistent premiums and maintains high occupancy while the other struggles with tenant retention and requires aggressive concessions. It’s part of a changing dynamic impacting commercial real estate valuations.
The difference isn’t physical; it’s how people actually use the space and the experiences the properties deliver. Traditional commercial real estate valuations remain grounded in fundamental metrics: net operating income, capitalization rates, cash flow projections, and price per square foot. These foundational measures haven’t disappeared and won’t.
What’s changed in 2026 is that forward-thinking investors, appraisers, and advisors increasingly factor in how effectively properties support human experience, productivity, and engagement. People-centric metrics don’t replace financial analysis, but they do help explain why assets with similar traditional profiles perform dramatically differently over time. Here, SVN® International provides an understanding of this evolution and how it helps commercial real estate professionals serve clients. continue
By SVN Staff