High-tech: The intersection of technology and real estate creates a compelling investment landscape
The importance of integrating real estate with technology has never been more apparent than during the COVID-19 pandemic. Almost overnight, businesses had to adapt to a new reality, and technology allowed some companies to continue their operations even at the height of lockdowns. Specific to commercial real estate, technology has accelerated the shift in market dynamics within the retail and logistics sectors. Other sectors, such as office, have seen a wide range of new developments, including enhanced space utilization, energy efficiency, and even biometric access.
Many property types at the intersection of technology and real estate were previously considered alternative and largely shunned by institutional investors as “not being core enough” in nature. These once-niche sectors, such as logistics, are now the pockets of the property market experiencing the most attractive near-term and compelling long-term investment theses. Technology-oriented sectors, such as data c