COVID-19 Impact on Real Estate: A Global View from AEW

Key takeaways:

  • AEW, an affiliate of Natixis Investment Managers, is one of the world's largest real estate investment managers. Founded in 1981, it has a long track record of successfully implementing core, value-add, opportunistic, and real estate securities strategies across the US, Europe and Asia.
  • Hans Vrensen, CFA®, Mike Acton, CFA® and Glyn Nelson, respectively Head of AEW Research for Europe, North America and Asia, discuss the impact of the COVID-19 on the real estate sub-sectors and on financial markets across the regions.
  • Confinement measures have negatively impacted retail sales and shopping centers in Asia but recovery may be quicker than expected. In the US, e-commerce is driving demand. In Europe, retail sales have dropped but logistics and offices are not immune to the economic slowdown.
  • COVID-19 outbreak and acceleration of remote working have changed the perception of working at the office and the way we work together. Corporates need to convince reluctant employees to return to the office. Social distancing at work is a new constraint.
  • AEW experts discuss the long-term outlooks on the financial centers. There may be opportunities in suburbs or secondaries cities. Though offices in attractive areas, such as the downtown locations of big cities, contribute to attracting and retaining talents.
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This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of June 4, 2020 and may change based on market and other conditions.

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