Allocation Strategy

Investors are on alert for a growing number of red flags that extend beyond power and land access to sustainability, cybersecurity and data sovereignty.

The investor, which has links to a large shopping mall owner, also sees opportunity in sustainable real estate, said principal Julian Marwitz.

Investors are seeking exposure to real estate operating company returns via increasingly creative means, delegates heard at the PERE Europe Forum.

The asset management giant’s global chief investment strategist believes labels do not capture more nuanced opportunities in the asset class.

Core investors are looking beyond a simple public vs private choice, selecting structures based on the role vehicles need to play in the real estate portfolio.

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.

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.

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.