Business
Bank of America Outlook Sees Renewed Opportunity Across Commercial Real Estate, Farmland, Timberland and Energy
Bank of America Outlook Sees Renewed Opportunity Across Commercial Real Estate, Farmland, Timberland and
About this update from Bank Of America Corporation
[{"type":"text","content":"Key findingsReal assets remain an important diversification tool in uncertain markets.Improving fundamentals are reshaping opportunities in commercial real estate and land.Rising power demand driven by AI is changing the energy investment landscape.CHARLOTTE, N.C., May 21, 2026 /PRNewswire/ -- Bank of America today released its 2026 Specialty Asset Management Outlook, highlighting investment opportunities across commercial real estate (CRE), farmland, timberland, and energy. As capital markets reopen and short‑term borrowing costs decline, the report reveals a more constructive investment environment for real-asset investors in 2026 and beyond.\"In uncertain markets, real assets can serve as a powerful diversifier for ultra-high-net-worth individuals and institutions,\" said Ken Shepard, Head of Specialty Asset Management at Bank of America. \"Real assets' historically low correlation to traditional assets and potential inflation‑hedging characteristics can dampen the effects of volatility over the long term while helping provide differentiated returns.\"CRE turns the corner with improving fundamentals and emerging capital market rebound After a significant interest-rate driven reset that began in 2022, CRE appears to be turning the corner, with values at or nearing an inflection point. Vacancies have largely peaked, new forward supply is muted, and negative appreciation returns have faded, approaching positive territory as transaction activity picks up and more capital enters in the market. Fundamentals are poised to continue improving, supported by secular demand trends (industrial, apartments, medical) and cyclical trends (retail and apartments). Together, these dynamics position CRE as an increasingly attractive entry point for long‑term investors.Farmland recalibrates with opportunities in select markets Farmland markets are entering a recalibration phase following several years of strong appreciation. While excess commodity supply and trade and interest‑rate uncertainty continue to weigh on near‑term conditions, their impact has eased compared with a year ago, reinforcing farmland's durable long‑term role in diversified portfolios. Its inflation‑resistant profile and stable income potential continue to attract investors, with value opportunities emerging in markets such as California, where climate conditions in the C...