2026年全球另类投资展望报告：公私融合新纪元（第八版）（英文版）-摩根大通

portfolonsghts

Alternative

Investments

Outlook2026

8thAnnualEdition

Aneweraofpublic-privateconvergence

WhenyouinvestinalternativeswithJ.P.MorganAssetManagement,

ouraccessbecomesyouraccess.

Foreword

JedLaskowitz

GlobalHeadofGlobalPrivate

Markets&CustomizedSolutions

AntonPil

J.P.MorganAssetManagement3

HeadofGlobalAlternativeInvestmentSolutions

Theworldisenteringanewera–onedefinedbyrapidtechnologicaladvancement,shiftingeconomicparadigmsandtheconvergenceofpublic-privatemarkets.

Aswelookaheadto2026,theforcesshapingourinvestmentlandscapearemoredynamicandinterconnectedthaneverbefore.

Thisyear’sAlternativeInvestmentsOutlookarrivesatapivotalmoment.Theglobaleconomyisbeingreshapedbyaonce-in-a-generationcapitalexpenditurecycle,fueledbythetransformativepowerofartificialintelligence(AI)andthedeepeningintegrationofpublicandprivatemarkets.Companiesarestayingprivatelonger,

enabledbytheunprecedenteddepthandsizeofprivatemarkets–nowestimatedtobeclosetoUSD20trillion,adramaticincreasefromadecadeago.Privatecreditmarkets,despiterecentchallengesinthebusinessdevelopmentcompanyspace,havegrowntenfoldfromUSD250billionin2007toUSD2.5trilliontoday.Meanwhile,

AIandtheelectronificationofeverythingaredrivinganinvestmentsuper-cycleto

ensureenergysupplymeetsrisingdemand.Additionally,thisenergyneedstobesecure,meaningrenewablesareplayinganincreasinglyimportantglobalrole.

Fordecades,demandforprivatemarketswasdrivenprimarilybyinstitutionsand

theworld’swealthiestinvestors.Today,thatdynamicisshifting:Retailinvestorsand

retirementsystemsaroundtheworldareincreasinglyparticipatinginprivatemarkets,supportedbyregulatorychangesexpandingaccesstoalternativesandgrowinginterestininfrastructureandrealassets.Thisdemocratizationofaccessisreshapingthe

investorbaseandfuelingfurthergrowth.

Ahealthypublicmarketisgoodforprivatemarkets.Publicmarketsremainvibrant,withaglobal60/40stock-bondportfoliodeliveringimpressivereturnsanddiversificationthis

year.Thisunderscorestheimportanceofdiversification:Morethanever,privatemarketsareessentialtoadddiversification,protectionandreturnpotentialtoportfolios.Ifall

youhaveisahammer,everythinglookslikeanail–privatemanagerspromoteprivate,publicmanagerspromotepublic.Intoday’senvironment,bothareessential.

Asprivatemarketsmatureintoastructuralmainstayofglobalfinance,theopportunity

setforinvestorsisbroaderandmorediversethaneverbefore.Innovation,especially

intechnology,isincreasinglyfundedawayfrompublicexchanges,andtheembraceof

alternativesbyawiderinvestorbaseisreshapinghowgrowthisfinancedandwhere

returnsarefound.Whilequestionsaroundvaluations,transparencyandliquidityremain,thesearesignsofamarketevolving–notmarketexcess.Thenextphasewillreward

selectivity,disciplineandtheabilitytoconnectsignalsacrossbothpublicandprivate

markets.Withtherightexpertiseandperspective,investorscanparticipateinthedriversofthisonce-in-a-generationcapitalcycleandhelpshapethefutureofglobalinvesting.

Weareexcitedtoshareourperspectivesandtohelpinvestorsnavigate–andshape–thefuture.

Contents

Foreword3

Themacroview

5

Realestate

8

Infrastructure

23

Transportation

28

Timberland

37

Hedgefunds

44

Privateequity

53

Privatecredit

63

Acknowledgments

73

Themacroview

Privatemarketsarenowessentialforaccessinginnovationand

diversification,offeringexposuretothemeslikeAIatmoreattractivevaluationsthanpublicmarkets.

6AlternativeInvestmentsOutlook2026

ThemacroviewRealestateInfrastructureTransportationTimberlandHedgefundsPrivateequity

Privatecredit

。

DiversificationandAIdriveprivatemarketsinterest

Privatemarketshavegrownrapidlyoverthepastdecade,withassetsundermanagementnowexceedingUSD20

trillionglobally.Thisexpansionhasbeendrivenbyaprofoundstructuralshiftinglobalcapitalmarkets:

Companiesthatoncedependedonpublicmarketsforgrowthcannowaccessvastpoolsofprivatecapital

throughventurecapital,growthequityandbuyouts.

Thejourneyfromstartuptomaturityisincreasingly

takingplaceintheprivatesphere,andbusinesses

canremainprivateforlongerwhilestillaccessingthe

fundingtheyneedtoexpand.Forinvestors,thishas

openedupabroaderandmorediverseopportunityset,allowingthemtoparticipateingrowthandvaluecreationearlierinthecorporatelifecycle.Thiscombinationof

structuralchange,expandedaccessandpotentialforportfoliodiversificationhasfueledgrowinginterestinprivateassets.

Atthesametime,flexiblefundstructures,suchas

open-ended,evergreenvehicles,1haveofferedinvestorsnewwaystoaccessarangeofprivatemarketassets.

AIissettoremainadominantthemeintheyearahead,andprivatemarketsarewellpositionedtocapture

opportunitiesacrossitsvaluechain.

AsAIadoptionmovesfromproof-of-concepttolarge-scaledeployment,investorscanuseventurecapitaltoback

cutting-edgedevelopmentorinfrastructuretosupport

thegrowingenergydemandsofdatacenters.Spendingbymajorhyperscalers–companiesthatoperatemassivedatacenterstoprovidevastamountsofcomputing

power,storageandcloudservices–haseffectivelyshiftedvaluefrompublictoprivatemarkets.Privateequity,

infrastructureandprivatecreditfundsarenowfinancingthebuild-outofdatacentersandassociatednetworks,aswellasthepowergridsthatfuelthem.

2025alsohighlightedAI’sdisruptiveandunpredictablenature.Therapidprogressoflesser-knowncompanies,suchasChina’sDeepSeek,underscoredtheriskof

concentrationinpublicequities,wherethelarge-cap

stocksinthe“Magnificent7”accountfor35%ofthe

S&P500Index,theforwardprice-to-earningsratioof

whichsitsat23timesearningsastheyeardrawstoa

close.Forinvestorswaryofpublicmarketvaluations,

privatemarketsofferawaytoaccesstheAIthemeat

moreattractivevaluations,particularlyinthesmall-andmid-market.

Overall,thesefactorshaveledtoasurgeininterestinprivatemarkets,whichhasnaturallyraisedquestions.

Arevaluationsinthissectoroverstretched?Areinvestorstakingonexcessiveriskinalesstransparentcorner

ofthemarket?Dealactivityhasslowed,andexitshave

becomemorechallenging,feedingconcernsthatprivatemarketscouldbeenteringabubble.Whilethesefears

areunderstandable,interpretingcurrentdevelopmentssolelyasexcessoverlooksthebroadercontextthat

privatemarketsareevolvingtoreflectanewnormalincorporatefinance,andtheirincreasingroleinglobalinvestingappearsmorestructuralthancyclical.

Driversofgrowthacrossassetclasses

Asinvestorinterestinprivatemarketsgrows,different

strategiesarecapturingvalueinuniqueways,

fromoperationalgainsinprivateequitytoyieldinprivatecreditanddiversificationviahedgefunds.

1Privateequityvehicleswithanindefinitelifespanthatoffermoreflexibilitythantraditionalclosed-endfunds.Theyallowinvestorstomakeperiodiccontributionsandredemptions.

Authors

AaronMulvihill,CFA

GlobalAlternativesStrategist

GlobalMarketInsightsStrategy

KerryCraig,CFA

GlobalMarketStrategist

GlobalMarketInsightsStrategy

AaronHussein,CAIA

GlobalMarketStrategist

GlobalMarketInsightsStrategy

J.P.MorganAssetManagement7

Themacroview

Privatecreditthrivesonstructuraldemand

Therapidgrowthofprivatecreditisademonstrationofitssuccess,butalsoanemergingsourceofpotentialrisk.

Attractiveyieldsandflexibledealstructureshaveprovencompellingtolendersandborrowersalike,thoughrisingcompetitionandcapitalinflowstothesectorhaveledtodiminishedlendingstandardsinsomecases.Earlysignsofstress,suchasliabilitymanagementexercisesand

payment-in-kind(PIK)arrangements,haveemerged.

Concernsaboutapotentialbubbleinprivatecredit

resurfacedinSeptember2025whenahandfulofU.S.

borrowersdefaultedonlargedebts,particularlyintheautosector.Whilealarming–drawingcommentary

frominvestorsandotherinterestedpartiesoutsidethedomesticU.S.market–thesedefaultsappeartobe

issuer-specificratherthansystemic,thoughtheyhaverefocusedattentiononcreditquality,adequatepricinganddiversification.

Witharecessionunlikelyin2026,privatecreditcontinuestoofferahealthypremiumrelativetopublicmarket

credit.Senior-securedU.S.directlendingremains

particularlyattractive,offeringyieldsaround200basispoints(bps)aboveleveragedloansandroughly300bpsaboveU.S.highyield.

Demandforyieldcontinuestooutpacesupply,

andprivatecreditremainsakeyfinancingsourceforprivateequitytransactionsandcontinuationfunds,supportingliquidityintheprivateequityecosystem.

Yetdefaultsremainlimitedandfloating-ratestructuresmaycushiontheimpactofrisingdebtburdens.

Thismomentumextendsbeyondlargesponsors.Smallandmid-marketcompaniesrelyonprivatelendersforgrowth,acquisitionsandrecapitalizations,astraditionalbanksareconstrainedbyhighreserverequirements

andregulations.Theassetclassnowalsocompetes

withbroadlysyndicatedloanstofinancelargerbuyouts,providingpatient,flexiblecapitalthatcomplements

privateequitywhileofferinginvestorsareturnpremium.

Privateequitypoisedforalphaandgrowth

Privateequityhaslongbeenastronggeneratorofalpha,withadiversifiedglobalbuyoutindexoutperforming

publicequityby500bpsperannumoverthepastdecade.

Highvolatilityandeconomicuncertaintyinearly2025madeexitsandinitialpublicofferings(IPOs)more

challenging,particularlyforlarge-capinternational

companies,thoughweexpectmanyoftheseheadwindstoeaseinthecomingyear.Asinterestratesfall,

financingcostsease,whichprovidesapotential

tailwindfordealmakingandadd-onacquisitionsand

supportscurrentvaluations.Combinedwithrobust

post-IPOperformance,anon-recessionaryeconomyandsupportiveregulatoryconditions,2026couldbeastrongyearforexitsanddistributions.

Inthemeantime,small-andmid-capprivateequity

benefitsfromlowervaluations,domesticfocusand

simplerbusinessmodels,withoperationalimprovementstrategiesprovinghighlyeffective.

Regionally,AsiaPacific(APAC)isseeingrisingtransactionactivityandahealthysecondarymarket,withglobal

privateequityinvestmentsexceedingUSD1.3trillionin

Q1-Q32025andlowerratessupportingleverageand

portfoliogrowth.InEurope,theMiddleEastandAfrica

(EMEA),smallandmid-marketdealsdominate,withvaluecreationdrivenbyoperationalimprovementsratherthanfinancialengineering.Thisallowscompaniestoscale,

expandproductofferingsandenternewgeographies.

Hedgefundscapitalizeonvolatilityacrossregions

Amidrisingmarketandeconomicrisks,investors

areincreasinglyturningtohedgefundsforportfolio

resilience.Higherequityvolatility,greaterdispersionandmorenormalratesarealsocreatingaricherenvironmentforhedgefundstodeliverexcessreturn,oralpha.

Theseconditionsplaydirectlytohedgefunds’strengths.Risingequitydispersionanddecliningcorrelations

acrosssectorsarecreatingfertilegroundforharvestingalphaviamacroandrelativevaluestrategies.

Throughout2025,policy-drivenvolatilityand

pricingdislocationsalsocreatedabundanttrading

opportunities.Globalmacromanagersbenefitedfromdivergentcentralbankpolicies,reshoringofsupply

chainsandgeopoliticalrisks,whichproducedtradeabledislocationsacrossrates,currenciesandcommodities.

Acrossregions,thespeedandvarietyofmarket

shiftshavereinforcedthevalueofdiversifyingacrosshedgefundstrategies,allowinginvestorstoaccess

uncorrelatedreturnswhilenavigatinganincreasinglycomplexeconomicenvironment.

Realestate

Adurableglobalcommercialrealestaterecoveryisunderwayfor2026,withequityyieldssetto

outpacedebtandhigh-qualityassetsleadingperformance.

ThemacroviewRealestateInfrastructureTransportationTimberlandHedgefundsPrivateequityPrivatecredit

Inbrief

•Globalcommercialrealestate(CRE)isenteringanewphase.In2026,weexpectanormalizationintheCREcapitalstructureasequityyieldsedgehigherthandebtyields.ThisislikelytoboostCREtransactions.

•WeexpectadurableglobalCRErecoverytotakeholdin2026,thankstolowerinterestrates,continued

economicexpansionandlimitedsupply.Acrossallsectors,weexpecthigh-qualityassetstooutperform.

•Nationalismisontherise,changingtheindustriallandscapeandpotentiallytheeconomicandinvestmentlandscapes,too.

•Energyisanewvariableintheindustrialequation,anddemandforhigh-poweredmanufacturingspaceisoutstrippingsupply.

•Theofficesectorisrecoveringunevenly,withprimecentralbusinessdistrictlocationsintheU.S.,EuropeandAPACcommandinglowvacancyandstrongrentalgrowth,reflectingtheenduringvalueofpremiumspaces.Atthesametime,lower-qualityassetsarelikelytoremainproblematic,withelevatedcapitalexpenditure

requirementsandlimitedrentalupsidethreateningreturns.

•Theretailsectorisbecomingincreasinglyrelevantagain,drivenbyrisingconsumerdemandandthegrowthofomnichannelintegration.

•Residentialmarketsremainstructurallyundersupplied,supportingstrongperformanceinsingle-familyrentals,attainablemultifamilyhousing,purpose-builtstudentaccommodationandflexiblelivingaccommodations.

Atypicalmarketsshiftingbacktothenorm

Forthebetterpartofthelastthreeyears,globalCREhasoperatedinanatypical,invertedenvironment.

Typically,investorsexpectequitytodeliverhigheryieldsascompensationforgreaterrisk,whiledebtprovideslowerbutsteadierincome.Yet,thisrelationshipflippedinearlytomid-2023,fromwhichpoint,inmanycases,investorswereabletoearnhigheryieldsonthecreditthantheequityoftheverysameassets.

AuthorsContributors

ChadTredway

GlobalHeadofRealEstate

ThomasKennedy

HeadofResearchandInvestmentStrategyRealEstateAmericas

DavidChen

ChiefInvestmentOfficer

HeadofRealEstateAsiaPacific

TiffanyLewis

GlobalHeadofPrivateRealAssetSolutionsGlobalAlternativeInvestmentSolutions

PaulKennedy,PhD

HeadofPortfolioStrategyRealEstateEurope

JasonCho

RealEstateDueDiligence

GlobalAlternativeInvestmentSolutions

KennethTsang

HeadofResearchandStrategyRealEstateAsiaPacific

J.P.MorganAssetManagement9

Realestate

10AlternativeInvestmentsOutlook2026

Thatinversionwasaclearsignalofhowdislocated

capitalmarketshadbecome.Thesafestpositioninthe

capitalstack(arealestateproject’shierarchyofdebt

andequityinvestments)often,paradoxically,delivered

thestrongestreturns.Duringthisperiod,CREequity

valuationsdeclinedinmostmarketsacrosstheglobe,

whiletransactionandfundraisingactivityslowed

considerably.Theassetsthatprovedtobemostresilienttendedtobehigher-qualityassetsinmarketswithrobustoccupierdemandandconstrainedsupply.

Inthischapter,weoutlinewhywebelieveadurableglobalrecoverywilltakeholdin2026anddetailthethemesweexpecttodefineperformanceintheyearsahead.

InvertedcapitalstructurelookstofinallybereversingU.S.CREcapratevs.averagecostofdebt

7%

6%

5%

4%

3%

2%

,16,17,18,19,20,21,22,23,24,25CapratesCostofdebt

Source:BoardofGovernorsoftheFederalReserveSystem,MSCIReal

CapitalAnalytics,St.LouisFRED,J.P.MorganAssetManagement;dataasof10/31/2025.

FivereasonstoexpectaglobalCRErecoveryin2026

Attractiveentrypoints

Acrosstheglobe,propertyvaluationsremainlowerthantheirpre-COVIDlevels.However,realestateincome

growthhasendured,particularlyforhigher-quality

assets.Thisisthefirstcorrectionintheindustry’s

historywherepropertyvaluesdeclinedwhileincome

growthremainedpositive.Thiscreatesanopportunityforinvestorstoacquirehigh-quality,income-producingassetsatadiscount.

IntheU.S.,nearlyfivedecadesofdatashowthemarketisemergingfromonlythethirddouble-digitcorrectiononrecord.Followingthetwopreviouscorrections,

themarketexperiencedexpansionslastingmorethanadecade,withinvestedcapitalgrowingfour-tofive-fold.

Whileglobalequitymarketsareexpensivecompared

withthepastdecade,privateCREremainsrelatively

affordable.ThisiskeenlytrueintheU.S.and,toalesserdegree,inEurope.

Therecoveryisjuststarting;priorrecoverieswereadecadeplus

Realestaterecoveriesacrosscycles

Index100=TroughinODCEtotalreturn

600

500

400

300

200

100

Expansion:15years

Equitymultiple:5.1x

Expansion:13years

Equitymultiple:4.1x

Wherewe

arenow

一

04812162024283236404448525660

Quarterssincecycletrough

●Early1980sGlobalfinancialcrisis●Today

Source:NCREIFODCE,J.P.MorganAssetManagement;dataasof9/30/2025.

J.P.MorganAssetManagement11

Realestate

RateshiftstonormalizeCREcapitalandspuractivity

Asoflate2025,bondmarketsexpecttheFederalReserveandEuropeanCentralBanktolowerratestoabout

3.25%and1.75%,respectively,bymid-2026.AcrossAPAC,interestrateshavegenerallypeakedandretreated,

exceptforJapan,wheretheBankofJapanisexpectedtoraiseratesslightlyin2026.

Globally,weanticipatethatdebtyieldswillfallbelow

capitalizationratesbymid-tolate-2026.IntheU.S.,

whileweexpectamoretypicalcapitalstructure,wedonotexpectdebtyieldstoreturntotheexceptionally

lowlevelsseeninthepre-COVIDcycle.Thisshould

favorhigh-qualityassetsasperformancewillbemoredrivenbynetoperatingincomegrowthratherthan

leverageaccumulation.

InEurope,ongoingfiscalchallengeshavebrought

governmentandcorporatebondyieldscloser,suggestinglittletonodifferenceincreditquality.Thisconvergence

shouldincreasedemandforhigh-qualityrealestate,whichcanactasasafe-haveninvestment.

Monetaryandfiscalpolicysupportsdemand

Stronglabormarketsandrisingwagesfueldemand

forCRE,whichboostsreturns.Expectedinterestrate

cutsshouldfurtherstrengthenthisoutlookbyloweringfinancingcostsandencouraginginvestment.1Critically,theseratecutsarehappeningbeforeanysignificantjoblossesoreconomicslowdown,whichmakesagentle

slowdownintheeconomymorelikely.Unlikethepost-globalfinancialcrisis(GFC)period,centralbanksnowhavetheflexibilitytorespondaggressivelyifeconomicheadwindsemerge.

TheTrumpadministration’sOneBigBeautifulBillAct

isexpectedtoaddapproximatelyonepercentage

pointtoU.S.GDPgrowthin2026,drivenmainlybytax

cutsandincreasesindefenseandcriticalindustry

investment.Whilethebillmayraiseconcernsaboutthelong-termdeficit,itisexpectedtodeliverastrongboosttonear-termgrowth.MeanwhileinEurope,countries

arerampinguptheirdefensespending,withsomesuggesting5%ofGDPshouldbespentondefense.

InGermany,enhanceddefensespendingislikelytobecomplementedbygrowinginvestmentininfrastructure.AcrossAPAC,fiscalpolicyremainsbroadlyexpansionary.

Together,expectedratecutsandsupportivefiscal

measureshavemeaningfullyreducedtheprobabilityofaglobalrecession,withBloombergconsensusforecasts(asof10/27/2025)placingU.S.andeurozoneone-year-aheadrisksat30%and25%,respectively–levelsjust

abovehistoricaverages.2

RisingcostsandrestrictivezoningpolicieslimitnewCREsupply

Higherrates,limitedglobalmigration,tariffsandcost

inflationhavepushedthecostofreplacingCREabove

thevalueofexistingproperties,makinglarge-scalenewconstructioneconomicallyunviable.Rigidplanningrulesinsomeareas,combinedwithongoinginvestorcaution,havesharplyreducedconstructionactivity–volumesaredown60%to80%frompeaklevelsincertainmarkets.

Ourlong-termforecastfavorsCRE

Overthenext10to15years,weexpectstrongreturns

acrosstheglobalrealestatemarket.Whilepositive

rentalgrowth,supportedbyrisingoccupierdemand

andconstrainedsupply,underpinstheseprojections,

themaindriverofattractiverisk-adjustedreturnsis

today’sfavorablepricing.Notably,our2026Long-Term

CapitalMarketAssumptions(LTCMAs)focusonbeta,

oraveragemarketreturns,anddonotaccountfor

alpha-focusedstrategies.Weanticipatethatelevated

returndispersionoverthecomingyearswillcreatearichenvironmentforinvestorsseekingtogeneratealpha

throughcreative,targetedapproaches.

1IntheU.S.,wherewehavethelongesthistory,slightlymorethanhalfofhistoricreturnsareexplainedbywagegrowth.

2AccordingtoBloombergconsensuseconomistforecastsasof10/27/2025.U.S.andeurozone1-yearaheadrecessionestimateof30%and25%,respectively.

Realestate

12AlternativeInvestmentsOutlook2026

StrongreturnsareprojectedacrossrealestatemarketsCompoundnettotalreturnassumptions(%)

12

10

8

6

4

2

0

PrivateEquity

U.S.Value-AddedRealEstate

JapaneseEquity

U.S.REITs

VentureCapital

AsiaPacificCoreRealEstate

U.S.CoreRealEstate

ACAsiaex-JapanEquity

GlobalCoreTransport

EuroAreaLargeCap

EmergingMarketsEquity

ChineseDomesticEquity

U.S.EquityValueFactor

DirectLending

U.S.EquityMomentumFactor

EAFEEquity

U.S.EquityDividendYieldFactor

HongKongEquity

U.S.MidCap

ACWorldEquity

U.S.EquityMinimumVolatilityFactor

U.S.SmallCap

EuropeanCoreRealEstate

EmergingMarketsLocalCurrencyDebt

U.S.LargeCap

GlobalConvertibleBondsHedged

U.S.LeveragedLoans

UKLargeCap

U.S.EquityQualityFactor

GlobalCoreInfrastructure

EmergingMarketsSovereignDebt

GlobalTimberland

CommercialMortgageLoans

U.S.HighYieldBonds

EmergingMarketsCorporateBonds

RelativeValueHedgeFunds

Gold

LongBiasHedgeFunds

U.S.LongCorporateBonds

U.S.MuniHighYield

DiversifiedHedgeFunds

U.S.Securitized

U.S.LongDurationGovernment/Credit

U.S.InvGradeCorporateBonds

EventDrivenHedgeFunds

U.S.LongTreasuries

U.S.AggregateBonds

Commodities

TIPS

WorldGovernmentBondsHedged

WorldGovernmentBonds

Worldex-U.S.GovernmentBonds

Worldex-U.S.GovernmentBondsHedged

MacroHedgeFunds

U.S.IntermediateTreasuries

U.S.ShortDurationGovernment/Credit

U.S.Muni1-15YrBlend

U.S.Cash

U.S.Inflation

Source:2026Long-TermCapitalMarketAssumptions,J.P.MorganAssetManagement.

Performance-defininginvestmentthemesThenextfiveyearsarelikelytobeverydifferentfromthepastfive,whenoutperformancewaslargelydrivenby

sectorselectionandindustrialassetsemergedontop.

Lookingforward,weexpectthefocustoshifttowardassetselection,wherequalityonceagaintakesprecedence.

Onshoringtrendsdrivedemandforhigh-poweredindustrialspace

China’sentryintotheWorldTradeOrganizationin

2001helpedsparkatwo-decade-longgoldeneraof

globalization.Duringthatperiod,corporationsoffshored

manufacturingandsourcedthecheapestgoodsavailableintheirsupplychains,regardlessoforigin.However,COVIDandrisinggeopoliticalriskexposedthevulnerabilities

ofanever-globalizingworld.Asaresult,countriesare

takingamorenationalistapproachandonshoringcriticalindustriessuchasAI,robotics,chipmanufacturing,

pharmaceuticals,aerospaceengineeringanddefense.

U.S.

Since2001,theU.S.hasaddedfivebillionsquarefeetofwarehouseanddistributionspace,whilemanufacturingspacehasincreasedbyonly350millionsquarefeet.

Inotherwords,thecountrywasfocusedonmovinggoodsratherthanproducingthem.Consequently,theU.S.hasbecomereliantonforeignsources,especiallyChina,

forcriticalgoodssuchasbatteries,semiconductorsandrareearthminerals.Agrowingfocusondomesticmanufacturingforthesecriticalsectorsshould

offervaluablesupporttodemandforindustrialandmanufacturingspace.

Unlikethoseoccupyingtypicalwarehouseand

distributionspace,tenantsinthesesectorsneeda

significantamountofenergyinfrastructuretosupporttheirtech-heavy,advancedmanufacturingprocesses.

Higher-poweredbuildingsareinshortsupply,and

tenantsintheseindustriescanaffordtopayhigherrents.

Realestate

J.P.MorganAssetManagement13