Financial institution construction 2026
Agile portfolios. Data-led buildings. Stronger ESG delivery.
Jill Kennedy
Director, Global Sector Lead for Financial Institutions
I expect construction activity driven by financial institutions will pick up in 2026, while costs rise at a steady rate. The main drivers will be labour shortages, higher material prices and the extra costs that come with meeting changing and increasing sustainability requirements.
Financial institutions drive construction in two ways: firstly, through their own corporate property portfolios and secondly as investors in real estate. In 2026, we’re likely to see a split in behaviour. Large corporate property programmes will need to move forward, driven by lease expiry and the need for office and retail space. But investment decisions are likely to be more cautious. In both instances, agility is going to be critical.
What will shape financial institutions construction in 2026?
1. ESG
ESG (environmental, social and governance) will keep driving work in 2026, even when wider investment is cautious. Banks are under pressure to meet public net zero pledges and green building standards, across both corporate property and investment portfolios. This adds upfront complexity and cost for materials and certification.
Corporate property is a major source of scope 1 and 2 emissions. Decarbonisation will be an ongoing priority. Investment in energy retrofits, smart building tech and other carbon reducing strategies will continue to grow in 2026.
For investment portfolios, ESG is increasingly part of value and risk. Buildings that do not meet expectations on performance can carry higher operating costs and higher risk over time. That keeps pressure on both owners and occupiers to invest in upgrades.
2. Data and technology
Across the board, decision-making is moving towards measurable inputs: occupancy, energy use, and carbon metrics. That is becoming the basis for how space is assessed and managed, not just reported. For construction, this changes the brief. If occupancy, energy and carbon are going to be measured and acted on, the building has to be designed and delivered to support that. This means having the right systems, controls, clean commissioning, and reliable data from day one. It also means retrofit work is less about finishes and more about MEP (mechanical, electric and plumbing) and performance.
At the same time, AI transformation in the sector is pulling investment towards data centres and tech-heavy space. That can add cost pressure and delays, because it needs specialist labour and equipment, both of which are in short supply globally.
3. Agility
Corporate property will still need to move forward, driven by lease expiries and business needs. But demand for space is less predictable, so the priority in 2026 is flexibility: the ability to scale up or down without getting stuck with the wrong footprint.
At the same time, offices need a clearer purpose. A more strategic workplace can help encourage people back to the office, support productivity, and facilitate collaboration, innovation and engagement. Done well, it becomes a hub for teams and for external meetings, not just desks and meeting rooms. This approach needs to be planned in from the very start.
Underused space ties up cost and capital. In 2026, I expect more organisations to unlock significant value by actively managing their portfolio. That will include renegotiating leases, subletting or selling assets selectively to reduce long-term liabilities.
On the investment side, that same uncertainty affects what looks attractive. We'll see greater interest in smaller, better-performing assets, flexible formats, and assets where upgrades are deliverable and will hold value.
Risks people underestimate for 2026
The real cost of ESG compliance. New rules and certification targets can add time, cost and design change if they are not pinned down early.
Tech-heavy space needs specialist people and kit. Data centres and high-spec office space compete for the same specialists, which tightens supply and pushes up prices.
Building systems risk: cyber, automation, climate. More connected buildings bring cyber exposure. Automation needs oversight. Climate disruption is likely to grow. A data-based, analytical approach to resilience must be built in from the outset.
Delays in critical retrofit components. Key maintenance and retrofit items can take longer to source, which can hold up delivery.
What I’d do now to be ready
1
Actively manage portfolio to release value and agility. Decide what to keep, upgrade, shrink, or exit. Back those decisions up with real data and align to business priorities.
2
Use data to drive design. Occupancy, energy and carbon data should shape scope and specification early, so you can control cost and performance through design choices.
3
Plan ESG upgrades and cyber risk together. Smart systems help, but only when governance and security are designed in, and when supply chain and maintenance constraints are understood up front.
Case study
Transforming a live financial workplace: efficient, flexible, on budget
A global financial services firm wanted to redesign their Hong Kong office. Spread across multiple floors, each space had to support different teams and ways of working. The goal? A leaner, more efficient, flexible workplace.
We managed costs from the start. We set the budget, ran procurement and managed the tender process.
Shortly after appointments were made, the client asked us to reduce cost by 10%. We worked closely with the whole project team to meet the new target. We ran workshops with designers, contractors and client stakeholders to find smart, workable solutions. Together, we refined the design and made sure it still delivered on vision, function and flexibility.
This was a complex job in a tight urban setting. All work had to happen during evenings and weekends to keep the office running. And we made it work.
The result? A high-performing, flexible workplace delivered to budget and on schedule. A collaborative team. And a clear demonstration of how collaboration and certainty go hand in hand.