The current real estate environment is tainted by a great deal of uncertainty.

Investors are eagerly watching every move from central banks as they use their tool kits to tame high inflation. As rates have more than doubled in the past year in some regions, real estate investors are increasingly concerned with the volume of mortgages coming due over the next two to three years. While investors grapple with higher rates, secular changes are affecting the way different types of real estate are used. In the same way that online shopping has caused the physical retail landscape to be reimagined and repriced, the work-from-home phenomenon is causing the office landscape to drastically evolve.

These secular changes are happening as investors are wrestling with denominator effects from the slower pacing of private investment markdowns, furthering investor anxiety around real estate valuations. So, what does this all mean? Is it all doom and gloom? Or are there managers that a