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Core real estate investors are looking beyond the traditional sector menu to new asset types capable of delivering resilient, long-term income.

As core strategies adjust to a new market cycle, managers and investors emphasize resilient cashflows, operational execution and structural demand as the foundations of outperformance.

From income durability to active management to broadening sector definitions, these shifts are reshaping what qualifies as core and core-plus real estate in 2026.

After a significant repricing cycle, LaSalle Investment Management’s Matthew Sgrizzi and Jim Garvey say core equity is offering income yields that institutional investors have not seen in a decade, though risks remain.

Australia’s population, stability and constrained supply continue to draw international capital, but success in today’s core market depends less on allocating to the right sectors and instead selecting the right assets, say Dexus’s Brad Collier and Andrew Jeffs.

In a turbulent market, a clearly defined strategy and active management are essential, says PIMCO Prime Real Estate’s Annette Kröger.

PEI Group found APAC-focused private real estate fundraising attracted $20.5bn at the end of 2025, a $6bn increase on 2024.

The cost of waiting to future-proof real estate assets is rising as core and core-plus investors weigh energy-efficient retrofits against the risk of future obsolescence, writes Elisabeth Jeffries.

Alternative sectors have moved from niche allocations to mainstream portfolios as investors emphasize demand resilience and long-term demographics, say Christopher Merrill and Joey Lansing of Harrison Street Asset Management.

Non-traditional property types are the future of core real estate investing, explains Kayne Anderson’s Kyle Mayes.