Principal® outlook into commercial real estate in 2022.
The real estate investment universe has emerged from the COVID-19 pandemic altered by a shift in human behaviour. In the past two years we have changed the way we work, live, and play, which will affect how we think about and use commercial real estate going forward. The “DIGITAL” themes – Demographics, Innovation, Globalisation, Infrastructure, and Technology – which we first highlighted in our annual strategy outlook for 2019 as future drivers of investment performance, have become more prevalent, heightened by the pandemic. In many ways, the commercial real estate market has been thrust into the future, which has presented a rapidly broadening opportunity set that spans well beyond the traditional property sectors.
We believe those investors able to identify and step into this brave new world will find themselves at the forefront of growth and outperformance in commercial real estate in 2022.
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