Principal Asset Management Targets Asia-Pacific Growth
The firm is shifting investment focus to Asia-Pacific markets while maintaining core holdings within the United States.
Updated on Oct. 19, 2026 in Commercial
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Principal Asset Management is increasing its commercial real estate exposure in the Asia-Pacific region, citing significant growth potential. The firm continues to advise institutional clients to maintain their existing positions in the United States commercial property market.
Why it matters
Investors are seeking faster-growing markets to offset the impact of elevated global interest rates on financing costs. The firm notes that many institutional investors remain structurally underweight in Asia-Pacific real estate relative to its global valuation share.
Investment in Asia-Pacific commercial real estate reached $103.7 billion in the first half of 2026, marking a 29 percent increase from the prior year. Foreign investment in U.S. property accounted for 5 percent of transaction volumes in Q2 2026.
The players
Principal Financial Group
Headquartered in Des Moines, Iowa, this global financial investment management company provides retirement, insurance, and asset management services.
Principal Asset Management
This division operates as the investment arm of Principal Financial Group, specializing in private real estate and public market asset management.
The details
Principal Financial Group, which managed $808 billion in assets as of the second quarter of 2026, is prioritizing development in Australia, Japan, Singapore, and South Korea. The strategy centers on manufacturing net operating income growth through specific redevelopment opportunities in these faster-growing regional markets.
Timeline
Q4 2015 marked the peak for foreign investment in U.S. real estate at 22 percent.
Late 2025 saw the Asia-Pacific region reach a record 32 percent share of global cross-border investment.
Q2 2026 was the period during which Principal Financial Group reported $808 billion in managed assets.
August 2026 recorded a United States inflation rate of 3.4 percent.
Culture Shift
This move follows the pattern set by the record 32 percent global cross-border investment share for Asia-Pacific, signaling a structural adjustment by major asset managers. It reflects a shift away from traditional U.S. dominance toward faster-growing international markets.
For investors, this shift highlights the importance of balancing regional growth opportunities against the costs of high inflation and interest rates. Decisions regarding portfolio exposure now rely heavily on identifying markets where property returns outpace current financing benchmarks.
The takeaway
The firm is prioritizing markets in Australia, Japan, Singapore, and South Korea to capture regional growth. Investors are encouraged to focus on property types where redevelopment can consistently drive net operating income growth despite current macroeconomic volatility.
Further reading
Learn more about the latest trends in global Commercial property investment.
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