The last three years have seen dramatic swings in population flows, working patterns and residential real estate pricing. Real estate investors and developers chased population inflows, home price appreciation and rental growth to several metros in the U.S. south.
Mountain towns are incredibly attractive places to live. The limitless offering of year-round outdoor adventures, idyllic natural beauty and healthy lifestyles create friendly communities to raise families and top destinations for retirees and vacationers.
Retail businesses in mixed-use districts are doing well and appear poised for demand growth in the 2020s. This is particularly true for well-executed development projects in locations with strong demographics.
Core traditional real estate has struggled to maintain capital inflows in recent years, as once critical investable sectors face secular demand challenges and investors remain uncertain on the near-term macroeconomic outlook.
Since the pandemic hit at the start of this decade, the property picture globally has become more uncertain and less consistent. Economies around the world have oscillated and diverged, making a strong case for U.S. property investors to diversify abroad.
The story of surplus office space creating a drag on the office sector appears pretty straightforward. Vacancies have increased as demand has decreased. The national office vacancy rate has climbed into the high teens, which will take years to absorb given the tepid demand and downsizing still under way. However, it’s tough to paint office with the same brush; certain geographic markets have been less affected, and strong assets are outperforming weaker peers.
ESG was meant to unite the investment community around the basic idea that environmental, social and governance factors should be considered during the investment process to improve risk management.
Everyone talked about how much riskier the investment climate was immediately following the global financial crisis. But was it really?