Our Views on the Best Global Real Assets Opportunities in 2026 - Webcast Replay

Why Stabilizing Rates, Shifting Sector Dynamics, and Regional Divergence Are Creating New Opportunities Across Real Estate and Infrastructure

As markets enter 2026, investors in real assets face a landscape shaped by stabilizing interest rates, thawing transaction activity and an evolving mix of macroeconomic uncertainty and emerging opportunity. Across both real estate and infrastructure, decision makers are shifting away from broad thematic allocations and refocusing on fundamentals, asset level selection, and regional divergences that are becoming more pronounced across global markets.

Portfolio Construction in an Uncertain Environment

Across public and private markets, active management continues to be a defining advantage. Listed real assets investors are emphasizing stock selection as the foundation of outperformance, given limited visibility into macroeconomic outcomes. In uncertain periods, minimizing exposure to macro-driven volatility and concentrating on company specific fundamentals remain core priorities.

Private infrastructure managers share a similar mindset, though with a longer time horizon. Emphasis is placed on local conditions, asset-level fundamentals, and avoiding excessive reliance on regulatory environments or subsidies. A key trend is the narrowing of the return gap between North America and Europe, leading to a more balanced geographic portfolio and increasing interest in European opportunities.

Within private real estate, active portfolio management has become a critical edge. As the market moves away from an era where sector allocation dominated returns, asset-level selection and the strength of operating partners are now primary sources of alpha. In the next phase of the real estate cycle, operational execution and income generation are expected to drive much of the value creation.

Sector Trends: From “Next Generation” to a Reappraisal of Traditional Sectors

Public markets continue to reward sectors with strong growth prospects, particularly within next generation real estate categories such as data centers, healthcare, storage and towers. Although these once niche segments have grown substantially, traditional sectors—especially retail and office—are reentering the conversation after years of dislocation.

Retail has experienced a noteworthy turnaround. Both public and private market investors are finding renewed opportunities in essential retail formats, including retail parks in Europe and neighborhood/community center in the U.S., supported by limited new supply and resilient tenant demand.

Office is also entering a new stage, with early signs suggesting that high quality assets may be bottoming. While caution prevails, some investors are beginning to explore selective opportunities, particularly in major urban centers where fundamentals are improving.

Geographic Divergence and Relative Value

The past several years have underscored growing decoupling among global regions. Europe currently stands out for its compelling income premiums relative to government bond yields, faster repricing and improving rental growth prospects. Both real estate and infrastructure teams are increasing exposure to continental Europe.

In the U.S., opportunity is concentrated in sectors such as residential sub-sectors like senior housing, essential retail and select industrial themes. Asia-Pacific allocations remain active but more targeted, with caution around Japan as interest rates and political developments introduce additional volatility.

Execution Strategies in a Volatile Market

Volatility has spurred creativity in capital deployment. In private markets, secondaries have become an increasingly important tool for accessing discounted assets, mitigating J curves and adjusting portfolios more dynamically. Bespoke structures—recapitalizations, programmatic joint ventures, clubs and operating company investments—now account for a significant share of activity and offer enhanced governance and exit flexibility.

In listed markets, years of underperformance have left valuations attractive, creating potential conditions for renewed spirits including equity issuance, targeted M&A and strategic repositioning.

The Evolving Data Center Landscape

Data centers continue to attract significant attention, driven by strong baseline demand from cloud, connectivity and the expanding Internet of Things, as well as heightened requirements associated with AI adoption. While obsolescence and exit liquidity remain top concerns, the most durable assets are those with strong power availability, network connectivity and diversified tenants. Many private real estate investors are accessing the theme indirectly or through infrastructure strategies better suited to the scale and risk profile.