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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.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

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.

All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Investment Managers or any of its related or affiliated companies (collectively “Natixis”) and does not sponsor, endorse or participate in the provision of any Natixis services, funds or other financial products.

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