PGIM’s Trends for 2021 report lists real estate trends to expect in the next 12 months.

Uncertain Environment Persists: Signs are encouraging for economic activity going into 2021, but occupier demand will be held back in the first half of the year because of elevated levels of uncertainty. Supply Growth Remains Subdued: Unlike in past cycles, supply growth was contained prior to the downturn and is set to remain subdued in 2021 and beyond. Increased Remote Working Pushes Vacancy Upward: Office vacancy is already rising, and the prospect of a shift toward increased remote working is set to weigh on rental growth prospects in the coming years. Sector Divergence Stays Wide: Rental growth divergence is set to remain wide, driven by contrasting fortunes across geographies as well as between the logistics and retail sectors. Transaction Volume Recovers S