The landscape of institutional real estate investing is evolving. Recent revisions by the National Council of Real Estate Investment Fiduciaries (NCREIF) have expanded sector and subtype classifications, reflecting the growing significance of nontraditional property types such as data centers, self-storage, manufactured housing, life sciences and single-family rentals. These updates represent more than cosmetic changes — they mark a structural shift in how investors define diversification and benchmark core portfolios.

Institutional capital has increasingly flowed into nontraditional sectors as economic trends, technology, and consumer behavior reshape demand for real estate. Traditional sectors like office and retail face persistent headwinds from remote work and ecommerce, while alternatives often deliver more resilient income streams and exposure to high-growth industries. The share of nontraditional sectors in institutional portfolios has grown from only 2.7 percent in