The U.S. real estate market stands at an inflection point, with multiple tailwinds converging to create a compelling investment opportunity. Following a significant correction from 2022–2024, the sector has undergone a fundamental reset, establishing the foundation for a new growth cycle. Several key factors support an optimistic outlook for real estate performance in the years ahead.

Approximately 40,000 acres of powered land, almost 2 billion square feet, are needed to support current projections for data center growth over the next five years. Understanding where specific pockets of opportunity are likely to emerge next is critical.

After COVID-19 severely disrupted the travel industry, the future of hospitality was uncertain. Business travel stalled, leisure trips were paused, and many questioned whether hotels could recover. However, since the general recovery from the pandemic, the traveling consumer’s mindset has changed, and with it, the hotel industry has recuperated and is positioned to outperform.

Infrastructure traditionally has been associated with physical assets such as roads, bridges, airports, power grids and water systems — foundational systems that support the functioning of society and the economy. However, during the past decade, the definition of infrastructure has expanded to include sectors that may not appear as conventional hard assets but are essential to modern economic activity. Examples include digital infrastructure such as data centers, renewable-energy generation and distributed logistics networks.

The U.S. apartment market shows signs of recovery as appreciation has turned positive in first half 2025. Property values, which had declined between 15 percent and 20 percent on average from their 2022 peak, are beginning to rebound nationally.

Homebuilder warehouse lines (HBWLs) are revolving loan facilities that provide builders with the working capital needed to fund the construction of homes across multiple communities. Instead of being tied to a single asset or project, HBWLs operate as dynamic borrowing bases: As homes are started, completed, sold and released, capital is recycled into new homes.

Real estate credit has matured significantly during the past 20 years, evolving from a niche alternative into a sophisticated, strategic allocation for institutional investors.

The fall 2025 Editorial Advisory Board meeting for the Institutional Real Estate Americas publication was held Sept. 9–11 at the Rancho Bernardo Inn in San Diego, and the conversations held by the members of the board will drive editorial content in this publication for the next year.

Fiera Capital Corp. and the Canadian District of the United Brotherhood of Carpenters and Joiners of America (UBC) have launched the Canadian Built Opportunities Platform, a new real assets investment strategy with a dual mandate aimed at generating attractive risk-adjusted returns on capital while supporting jobs for UBC union members. The platform launches with an initial commitment of more than C$800 million ($579 million), divided equally between infrastructure and real estate investments, and aims to reach more than C$1 billion ($720 million) in assets within three years.

Rithm Capital Corp. has entered into a definitive agreement to acquire Paramount Group for $1.6 billion.

Investors looking at the industrial outdoor storage (IOS) space should focus on three main categories: zoning, environmental considerations and seller motivation. Zoning and permitting can be challenging, as some communities may have concerns about the impact of these operations.

RXR has launched its Gemini Office Venture, a multibillion-dollar office platform to invest in premier class A office properties in New York City.

Affinius Capital and Axonic Capital have formed a strategic partnership, which will deliver mid-market first mortgage financing for new development projects, funded through Axonic’s insurance platform.

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.