As BlackRock recently released its outlook on private markets—still attractive risk premiums that can offer portfolio resistance—some of its general observations have relevance to commercial real estate.

BlackRock discusses the 3Ds of decarbonization, digitalization, and decentralization. Moving from fossil fuels, the transformation of the digital world, and distribution of infrastructure control has relevance to CRE.

"For real estate markets, the 3Ds of infrastructure are similarly applicable, while we see several additional drivers at work," the report says. "In particular, the wide and sustained divergence in performance between the winners (sheds and beds) and losers (hotels and retail) are likely to be sustained for now, providing considerable scope for alpha from sector selection. At the same time, distressed and dislocated real estate segments are starting to show signs of deep value, although these opportunities need on-the-ground, off-market sourcing capabilities to unlock."