The world of investing is undergoing profound transformations, shaped by shifting global dynamics and evolving economic realities. While the fundamental principles of investing remain steadfast, Invesco argues that the forces driving change, such as demographic shifts, climate change, a reordering of global power structures, and the end of an era of zero interest rates—are undeniable. These trends demand thoughtful strategies to navigate uncertainty and capitalize on emerging opportunities.

Yet, some questions defy easy answers. Invesco highlights five critical areas where the future remains murky: the influence of geopolitics on growth and inflation, the emergence of new “normal” levels for inflation and interest rates, the potential impact of a changing world order on capital flows, evolving long-term return expectations, and the transformative role of technology in real estate. These are not challenges with quick fixes but instead require a recalibration of long-term asset and portfolio strategies to manage risks across multiple economic and market scenarios.

Geopolitics stands out as one of the most complex factors shaping investment decisions. The commercial real estate sector has traditionally been defined by clear geographic boundaries, but recent developments have blurred those lines. For instance, tariff policies introduced by the Trump administration have exerted both direct and indirect financial pressures on CRE. While it remains unclear whether these effects will be temporary or enduring, one thing is certain: shifts in international relations are prompting nations to prioritize domestic infrastructure and defense investments. These moves could spur economic growth but may also stoke inflationary pressures.