In a sponsored report published in the February issue of Institutional Real Estate Americas, MetLife Investment Management offers an outlook for real estate in 2026, including overweight and underweight guidance across property types for the year ahead.

Data centres remain relatively new for many institutional investors, with most portfolios still underweight in the sector. The growing spotlight on the sector, however, is clearly justified. The segment has delivered strong performance in both public and private markets, driven by stable, long-term cashflows and robust growth from cloud adoption, AI and broader digital trends. The long-term growth prospect remains strong, but the sector also faces new considerations.

Today, the “Five Ds” no longer function as isolated growth indicators but as interacting macro regimes that balance opportunity with constraint. Each force shapes real asset strategy, identifies secular opportunities and delineates the limitations investors must navigate.