Many of the forces shaping projects in early 2026 have been building steadily over the past year, from shifting policy landscapes to rapidly maturing technologies to ongoing conversations about resiliency, cost, and carbon. With those dynamics continuing to evolve, three PAE leaders share what they are paying attention to now and why these trends matter for clients planning projects this year.

Adaptive Design Strategy

Prediction: Adaptive teams will lead by advancing regenerative strategies, driving materials transparency, and putting efficiency back at the center.

“2026 will push design teams to work more opportunistically, redirecting effort toward areas where progress is possible despite policy setbacks. Firms will look for openings where design choices, procurement, or innovative projects can move the needle. That may mean advancing ecosystem and regenerative strategies on some projects, shifting the focus beyond energy and carbon. It might mean pushing hard on sustainable materials on others or strengthening resilience and human experience through passive design. This moment also gives historically sidelined sustainability issues a better chance to advance, simply because they draw less political heat and are more likely to be approved. The headline here is adaptability: teams that pivot between sustainability priorities and apply steady, targeted pressure wherever conditions allow will continue to make real progress.”

Claire Maxfield, Regenerative Design Group Lead, Principal

Healthcare: Lifecycle Value + Assured Resilience

Prediction: Healthcare design will prioritize lifecycle value and assured resilience.

“Last year highlighted a major challenge: the gap between fast-moving mechanical technologies—especially heat pumps—and energy and healthcare codes that update on slow four-year cycles. Electrification is advancing faster than regulations can support, creating real design friction. Looking to 2026, we’ll see long-term thinking take precedence—prioritizing durability, maintainability, and true lifecycle value over short-term performance metrics. And while electrification is an important tool, the push for full building electrification in healthcare will require careful consideration. Hospitals cannot yet rely on a grid strained by explosive data-center growth, and healthcare facilities—more than most—need assured resilience.”

Daniella Wahler, Principal, PE

Multifamily: Integrated Strategies for Sustainability + Affordability

Prediction: Multifamily will adopt integrated strategies that deliver both sustainability and affordability.

“To meet the growing need for affordable and sustainable housing, several design approaches are quickly gaining traction. Mass timber uses prefabricated wood structural elements that are fire-resistant, have lower construction costs, and lower embodied carbon compared to other structural materials. Other rising trends include centralized, dedicated outside air systems that provide 100% fresh air with higher levels of filtration, thereby increasing overall indoor air quality. Producing hot water in multifamily housing is one of the biggest energy uses. Heat pumps provide three times the efficiency and reduce overall greenhouse gas emissions compared to a typical gas water heater. For building owners, the benefits of investing in energy efficiency are becoming increasingly apparent, as it enables them to save on overall utility costs and create more environmentally friendly spaces.”

Ruwan Jayaweera, Senior Principal, PE