Real State: Coronavirus will accelerate existing trends – JP Morgan

The way investors think about opportunities in the real estate market will need to change, but the role of the asset class in portfolios will remain the same, in the opinion of economists at JP Morgan Asset Management.

Key quotes

“With COVID-19 forcing many employees to work from home, corporations will likely continue to gravitate away from traditional office space and embrace more flexible options.”

“It would make sense that retail properties continue to transition towards providing more consumer services. In addition, retail properties may begin to look a bit more industrial, and function as e-commerce fulfillment centers given the combination of available space and close proximity to major population centers.”

“The diversification and yield that direct real estate can provide will only grow in importance in a world where interest rates remain historically low.”