Inflation

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

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.

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.

As redemption queues linger, investors with dry powder are capitalizing on repriced assets, explain StepStone Real Estate’s Margaret McKnight, Jennifer Jones and Andrew Mitro.

Rising construction costs, limited supply of prime space and growing rents are helping logistics outperform other income-focused real estate strategies across Asia-Pacific, says ESR’s Phil Pearce.

As managers seek liquidity without relinquishing prized assets, secondaries are becoming a permanent channel for capital flow.

Capital is once again returning to the retail sector in a big way, say Newport Capital Partners’ Derrick McGavic and Josh Kagan.

A growing cohort of institutional investors are turning to real estate secondaries as global buyers look for exposure to in-demand asset classes.