Joe Gorin, head of U.S. real estate equity at Barings, discusses the challenges facing commercial real estate markets due to rising interest rates and shifts in tenant behavior toward hybrid and remote work, in a recent podcast hosted by Greg Campion, managing director in Barings' marketing group.
Gorin acknowledges the tough environment for real estate investing, emphasizing the impact of interest rate sensitivity on valuation. Structural issues, such as the changing nature of office usage, present both challenges and opportunities. While the utilization of office buildings has permanently shifted, positive structural trends, like strong demand in the residential sector, offer potential investment avenues.
Gorin shares his thoughts on the historical evolution of institutional ownership in real estate, noting shifts in sector preferences, with a decline in office holdings and a rise in industrial and residential allocations. The discussion highlights the transformative
