The current Middle East conflict and key shipping chokepoint closure reset the outlook: lower growth, higher inflation, and interest rates reversing the path expected earlier.
The disruption was still seen as temporary, but prolonged conflict could block a pre-conflict recovery by Early-Q1 2027, with trade friction returning later this year.
Higher fuel, materials, and logistics costs made cost management the primary decision driver, while pricier construction pushed starts lower and strengthened repositioning opportunities.
Artificial intelligence was segmenting markets rather than moving them uniformly, as reliable affordable power became an immediate constraint shaping portfolios, growth, and leasing choices.
For investors, close market monitoring and income growth focus were key, while occupiers benefited from scenario planning and resilient, agile operating models.
