Risky paths
The pandemic continues to pose the greatest risk to the U.S. economy going forward. A full economic recovery relies on suppressing the coronavirus. Recent news about the prospect of effective widely available vaccines suggests that this is the most likely path.
To return, or not to return?
That is the question.
Since the onset of the pandemic U.S. office using tenants have undergone a massive shift to working remote. Most workers continue to do so even though many cities have eased restrictions and allowed for tenants to reoccupy spaces. By some estimates, only about a quarter have returned to the office, and many companies have allowed for such flexibility going well into 2021.
A new power couple in town: industrial and retail
Ongoing pressure for supply-chain efficiency, an uptick in e-commerce, and proximity to growing urban centers have brought the industrial and retail sectors together. The pandemic accelerated a consumer shift toward online shopping, driving demand for logistics locations close to population centers to facilitate more efficient delivery.
Six feet of demand
The retail sector continues to contend with a high degree of disruption in the wake of COVID-19’s impact on the U.S. economy. Six degrees of separation has become six feet of separation. The global pandemic, changing consumer expectations, and sustainability concerns continue to redefine the retail landscape.
New sectors for investors
Yield-oriented investors are looking to diversify their portfolios. Alternative asset types such as life science, data centers, and self-storage have all performed well and gained traction among investors. Multifamily, especially in areas of high inbound migration, offers further opportunities for portfolio diversification.
