"In uncertain markets, real assets can serve as a powerful diversifier for ultra-high-net-worth individuals and institutions," said Ken Shepard, Head of Specialty Asset Management at Bank of America."Real assets' historically low correlation to traditional assets and potential inflation-hedging characteristics can dampen the effects of volatility over the long term while helping provide differentiated returns."

CRE turns the corner with improving fundamentals and emerging capital market rebound

After a significant interest-rate driven reset that began in 2022, CRE appears to be turning the corner, with values at or nearing an inflection point. Vacancies have largely peaked, new forward supply is muted, and negative appreciation returns have faded, approaching positive territory as transaction activity picks up and more capital enters in the market. Fundamentals are poised to continue improving, supported by secular demand trends (industrial, apartments, medical) and cyclical trends (retail and apartments). Together, these dynamics position CRE as an increasingly attractive entry point for long-term investors.

Farmland recalibrates with opportunities in select markets

Farmland markets are entering a recalibration phase following several years of strong appreciation. While excess commodity supply and trade and interest-rate uncertainty continue to weigh on near-term conditions, their impact has eased compared with a year ago, reinforcing farmland's durable long-term role in diversified portfolios. Its inflation-resistant profile and stable income potential continue to attract investors, with value opportunities emerging in markets such as California, where climate conditions in the Central Valley support permanent crops, and the Northern Plains, driven by strong livestock markets.

Timberland supported by improving housing demand

Elevated construction and borrowing costs weighed on U.S. housing in 2025 and put short-term pressure on lumber prices. Despite these headwinds, long-term timberland fundamentals remained stable, and the U.S. South continued to attract significant sawmill and bioenergy investment. Improving housing demand and increased timber consumption are expected to drive long-term timberland value appreciation. Looking ahead, disciplined market monitoring and proactive asset management, rather than simply a buy-and-hold approach, can help investors capture emerging opportunities in the sector.

Energy markets shift as AI drives power demand

In 2026, demand is rising for reliable electricity as artificial intelligence, data centers, and broader electrification accelerate and place increasing strain on aging power grids. Oil markets continue to introduce uncertainty amid geopolitical risks, evolving supply dynamics, and changing energy security priorities. Meanwhile, natural gas will continue to play a growing role in meeting energy needs. The balance between fuel abundance and power scarcity will be a defining theme for investors.

Read Bank of America's full 2026 Specialty Asset Management Outlook (PDF).

Frequently asked questions

Answer: Bank of America's Specialty Asset Management (SAM) group helps clients integrate real assets into their broader wealth management plans through a disciplined, long-term approach. Backed by decades of hands-on expertise, the team provides investment guidance, oversight, and stewardship for a range of specialty assets, including commercial real estate, farmland, timberland, energy and mineral interests, and private businesses. The SAM team works with advisors and their clients who already own real assets or are considering acquiring them. Today, the team manages client assets with a total asset value of over $13 billion.

Answer: Specialty assets often involve operating considerations, unique risk profiles, and longer holding periods than traditional financial assets. They require active oversight and specialized expertise, particularly around liquidity needs, valuation, and operations. Importantly, these assets often behave differently from traditional stocks and bonds, which can make them a non-correlated option within a broader, diversified portfolio. For many ultra-high-net-worth families and institutions, specialty assets also represent holdings tied to legacy, making thoughtful management and oversight especially important.

Answer: For ultra-high-net-worth clients and institutions, specialty assets often carry both significant financial value and long-term legacy considerations. The SAM group supports clients across market cycles by providing consistent governance and oversight, with a focus on risk management, cash-flow sustainability, and long-term asset stewardship. This includes monitoring market developments, overseeing third-party operators and advisors, and helping ensure specialty assets remain aligned with clients' broader objectives as markets, regulations, and legacy goals evolve over time.

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Carolyn Batt, Bank of America
Phone: 1.646.983.1369
[email protected]

MAP #8927124​

Investing involves risk. There is always the potential of losing money when you invest in securities or real assets. Past performance does not guarantee future results. Asset allocation, rebalancing and diversification do not guarantee against risk in broadly declining markets.

Neither Bank of America Private Bank nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Credit and collateral subject to approval. Terms and conditions apply. Programs, rates, terms and conditions subject to change without notice.

Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC (Federal Deposit Insurance Corporation) and wholly owned subsidiary of Bank of America Corporation ("BofA Corp."), and its agents.

Bank of America Private Bank is a division of Bank of America, N.A.

U.S. Trust Company of Delaware is a wholly owned subsidiary of Bank of America Corporation.

Bank of America, N.A., and U.S. Trust Company of Delaware (collectively the "Bank") do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.