In this paper, we share some of our views on navigating the 'new normal' in real estate. A summary of some highlights in this paper include:
- COVID-19 will permanently transform the way we shop, work and play.
- Markets that flatten the curve sooner will rebound quicker.
- Sectors aligned to online fulfillment, wellness, household consumption and flexibility are well placed to prosper in the wake of COVID-19.
- Core, long WALE strategies will likely dominate capital flows, as investors turn increasingly defensive.
- Core logistics will grow as the investment market favourite, as investors lift allocations to the sector.
- The office of the future will be spacious, wellness focused and more flexible, to accommodate greater workforce mobility.
- Retail and consumer spending will cool, while e-commerce competition will sharply accelerate.
- Logistics fulfillment and inventory led by online household good demand looks set to drive strong demand story long term.
- Defensive alternatives such as medical office and multifamily will be compelling as “next gen core”.
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