We believe a healthy macro backdrop and strong demand for inflation-sensitive assets will support most real estate assets in 2022. However, given stretched valuations for many core assets and COVID-19–related uncertainty around some sectors, we think return prospects are highest for assets that benefit from secular trends, such as the growing demand for healthcare and broadband.
December 2021
The infrastructure market has evolved since the financial crisis. Almost a majority of current investing is now in “21st-century infrastructure,” which includes digital and renewable assets. Given the expected importance of both sectors to future growth, we anticipate that investors will commit greater amounts of capital to each in 2022.
December 2021
Fears that a default by China Evergrande Group could trigger a financial crisis has led to some weakness in global equities in recent days, with the MSCI All Country World Index falling 3.5% from its peak. While Evergrande is likely to default and require a major restructuring, we view fears of a broader financial crisis as overblown.
September 2021
The importance of digitisation has grown during the pandemic, as people have relied more on digital platforms, video streaming, and cloud storage. Investment across the digital infrastructure value chain continues to rise in response, and should increasingly be a priority for real asset investors.
May 2021
This paper discusses recent trends in US commercial real estate fundamentals and looks ahead to what might be in store for the remainder of 2021. Overall, we are reluctant to sound overly bullish about the broad asset class, as the outlook for some sectors is unclear. Still, for investors looking to immediately deploy capital, we highlight two categories of opportunities.
April 2021
Yes, but the opportunity set is currently limited. To date, the large amount of government stimulus and lax credit enforcements, the differentiated impact of COVID-19 on real estate sectors, and the challenges associated with valuing assets have worked to keep broad-based distress at bay for now.
October 2020
Yes, investors who have made tactical bets in gold should consider scaling back their positions and locking in some gains.
August 2020
While increased remote working will certainly be a headwind for office demand, the notion that it will result in the “death of the office,” as some reports have suggested, seems unlikely given a number of mitigating factors.
July 2020