The current cycle is harder to call compared to its predecessors. But, as Patron Capital founder and MD Keith Breslauer told Real Asset Media’s Richard Betts, following the vaccine roll out “Europe should do well”.
But the effects of the pandemic on real estate vary by sector and accelerated existing trends in logistics at one extreme and enclosed shopping centres at the other.
In between the extremes is the office market, Breslauer said. The sector is of course varied, from low level buildings, through suburban space to tower buildings. Breslauer said towers are the most challenged while Covid restrictions persist. “Nobody wants to spend 40 minutes commuting followed by another 30 minutes trying to get in a lift.”
Office towers also tend to be large and a significant capital commitment. However, he said that there is significant demand for suburban offices where the effect of restrictions is less severe, “so we like that space.”
Click on the video above to watch the full interview or listen to the podcast below.