F
ederated Hermes’ 2026 outlook shows debt and infrastructure shifts. Recent price corrections match occupier markets, yet rising construction costs and tech evolution create uneven demand across office and other sectors. Debt remains attractive for resilience and returns even when assets are pressured, provided underwriting is rigorous and tenant exposure diversified. In infrastructure, geopolitical fragmentation and sovereign focus spur onshoring in energy, data and defense, spotlighting electrification and renewables. UK inflation, rates and gilt yields stay near norms, though national debt persists.
