2026 Mid-Year Review: Mark Duclos, Sentry Commercial

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026?
The first half of 2026 has been an interesting six months to say the least. We initially thought we’d come screaming out of the gate in Q1, but the first 60 days fell flat. Since then, the end of Q1 and all of Q2 have been extremely busy. Most of that activity has been centered around manufacturing clients expanding their operations. On the office side, small office leasing and sales have been surprisingly brisk. We’re continuing to see strength in both the industrial and office sectors—not just on the brokerage side, but also on the construction side through our development company.

What trends or shifts have stood out most to you so far this year within your industry?
While we expected manufacturing to be strong, it’s been stronger than anticipated across small, mid-sized, and large businesses. Although there haven’t been a large number of big box distribution deals closing yet, there are several active requirements in the market that we expect to transact over the next three to six months. That said, the lack of inventory continues to create real challenges in both the manufacturing and industrial sectors. On the office side, as expected, large office leasing has remained quiet, with companies continuing to reduce their footprints. That’s putting ongoing pressure on the office market, and we’re seeing more conversions and some demolitions. However, smaller office spaces continue to see consistent activity.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026?
The strength in the industrial market has created significant opportunities for both our Brokerage & Advisory division and our Commercial Development Corporation. We continue to see demand for interior renovations, building expansions, and ground-up construction projects.

As we look ahead to the second half of the year, what are you watching most closely?
Without a doubt, global events—particularly in Iran—are something we’re watching closely. As of now, there’s a 60-day memorandum of understanding in place, but it remains tenuous at best. We’re concerned about the potential impact on energy costs, which ultimately drive the cost of goods and the overall cost of living. More specifically, rising construction material costs and ongoing supply challenges could make new construction—both for occupiers and speculative projects—more difficult to justify.

At the same time, high vacancy rates in the office sector are expected to persist through the remainder of the year and likely into 2027. We don’t see meaningful relief in the near term, and that continued pressure is leading to increased lender involvement and receivership situations, raising concerns about the long-term viability of these assets.