Brick and mortar here to stay, says Principal

It has become clear that many office workers in the United States and Europe will not be returning to the office on a full-time, permanent basis, at least in the near term. As a result, far more office space is currently being paid for than is being used, according to Principal Real Estate Investors’ Inside Real Estate Annual Strategy Outlook for 2022.

Other highlights include:

Retail: brick and mortar merchants still here, they are also expanding for the first time since 2015. Further, from the onset of the pandemic, retail spending returned to its pre-crisis peak in less than one year. Data centers: a critical cog in the machinery of the modern economy and a centerpiece of commercial real estate, binding all property types to the new economy. Housing: investors, the opportunity set is significantly greater than traditional multifamily given the multifaceted demand dr