In late September a group of plan sponsors and fund managers gathered in the seaside town of Cascais, near Lisbon in Portugal, to discuss the European real estate market and to identify potential editorial themes for forthcoming editions of Institutional Real Estate Europe.

A recurring topic was the changing composition of the institutional market and, crucially, potential consequences for investors. Over the past few years, the growth of ecommerce and hybrid working, together with an enhanced focus on sustainable investing, has led to meaningful changes in the composition of transaction volumes — both within and across sectors. At a sectoral level, there has been substantial growth in both logistics and residential, offset by a reduction in office and retail activity. Within each sector there has been a change in the definition of a “quality” asset, particularly in offices.

While these trends have been in place for some time, challenges associated with the COVID