Josh Pristaw, president of Clarion Partners, notes that investors are re‑evaluating risk amid mounting geopolitical tensions. The shift follows a period when infrastructure assets—pipelines, power grids, ports and telecom networks—were deemed the safest bet, prompting some capital to move from core real estate into those sectors.

Geopolitical strains have forced fund managers to question not just expected returns but the very definition of stability. As energy and communications networks face heightened exposure to sanctions, cyber‑attacks and supply‑chain disruptions, their once‑unquestioned resilience appears eroding. This reassessment nudges allocation decisions toward assets perceived as less vulnerable.

For owners of office towers, retail centers and multifamily complexes, the trend translates into renewed demand for properties that can generate cash flow independent of fragile infrastructure links. Portfolio managers at Franklin Templeton and peers may now tilt back toward real estate to capture yield differentials and hedge against the growing risk premium on infrastructure. The market is already seeing modest inflows into core property funds.