OUTLOOK
CENTERSQUARE: OFFICE SPACE SEEN ADAPTING
CenterSquare Investment Management LLC is a real asset manager focused on listed real estate, private equity real estate, private real estate debt and listed infrastructure investments, accessed via U. S.-only and global strategies. As of December 31, 2020, it manages approximately $ 12.1 billion in assets on behalf of institutional and private investors.
Finally, office will not face long-term structural headwinds from remote working. While we all will enjoy more flexible work environments and might work from home or some other remote location more often in future, office space will have to remain flexible to adapt to changing usages. A prolonged and material reduction in office space usage beyond the current recession is unlikely.”
Joachim H. Kehr, Portfolio & Regional Manager Asia-Pacific, shared his views on the various real estate sectors.
“ Beyond accelerating existing trends, we don’ t believe that Covid has materially altered the outlook for real estate markets. Retail in markets like Singapore and Australia is currently benefitting from easing lockdowns and stimulusfunded consumers, but the threat of e-commerce to brick and mortar retailers has increased over the past 12 months. The fortunes of retail assets catering to discretionary spending remain bleak if not bleaker than pre-Covid.
On the flipside, the secular tailwind that propelled logistics and data centers prior to Covid has strengthened over the past year. These sectors offer little investment upside in the near-term, given they will not benefit from an economic reopening as much as others, but longer-term, their prospects remain very much intact.
Office Space Source: Photo by Benjamin Child on Wunderstock
Manhattan, New York Source: Photo by Oliver Niblett on Unsplash
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