Bert Crouch, Head of North America and a portfolio manager with Invesco Real Estate, joined the Greater Possibilities podcast to address the chorus of questions about the US commercial real estate market, prompted by recent bank failures. Importantly, we also discussed the long-term trends that are opening up potential opportunities in areas such as retail, medical buildings, and apartments.
Here are some of the highlights from our conversation with Bert:
Is commercial real estate the proverbial “next shoe to drop” for the global economy?
What are the opportunities that are presenting themselves?
Have the long-term structural opportunities changed?
No. We expect demand for apartment rentals to continue to grow in an environment when new supply remains low. Aging demographics continues to support life sciences, including research and development centers as well as hospitals. We expect omnichannel experiences to continue to transform retail space and e-commerce demand to remain supportive for industrial space.
Military conflicts haven’t derailed long-term stock growth
War and unrest tempt investors to give up on investment plans, but history suggests markets continue their long-term growth despite military conflicts.
Above the Noise: Getting back to normal
While the economic ramifications of COVID-19 quarantines have persisted, normalization is in sight as an easing cycle appears to be on the horizon.
Beyond money markets: Maximizing your cash
Higher interest rates have enticed investors into money markets. But they aren’t risk free, and stocks and bonds have historically returned more over the long term.
Important information
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Investments in real estate related instruments may be affected by economic, legal, or environmental factors that affect property values, rents or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid.
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The opinions referenced above are those of the author as of May 9, 2023. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
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