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[vc_media_type_category]The coronavirus pandemic has impacted the way we work and live in unprecedented ways that are impacting how we consume. These thematics – including the increased use of technology, working from home, and online shopping – are acute in the real estate sector. This session will examine what this means for the asset class opportunities and risks as well as learnings for the whole portfolio. How investors can best combine listed and unlisted opportunities, and balance liquidity, will also be considered.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Jon%20Cheigh%22%2C%22job_role%22%3A%22Chief%20investment%20officer%2C%20Cohen%20%26%20Steers%20(United%20States)%22%2C%22content%22%3A%22Jon%20Cheigh%20is%20executive%20vice%20president%2C%20chief%20investment%20officer%20and%20head%20of%20global%20real%20estate.%20He%20leads%20the%20investment%20department%20and%20oversees%20the%20global%20real%20estate%20team%2C%20serving%20as%20senior%20portfolio%20manager%20for%20all%20global%20real%20estate%20strategies.%20Cheigh%20joined%20the%20company%20in%202005%20as%20a%20REIT%20analyst%20and%20has%20served%20as%20a%20portfolio%20manager%20since%202008.%20He%20was%20named%20head%20of%20global%20real%20estate%20in%202012%20and%20was%20appointed%20chief%20investment%20officer%20in%202019.%20Prior%20to%20joining%20the%20company%2C%20Cheigh%20was%20a%20vice%20president%20and%20senior%20REIT%20analyst%20at%20Security%20Capital%20Research%20and%20Management.%20Prior%20to%20that%2C%20he%20was%20a%20vice%20president%20of%20real%20estate%20acquisitions%20at%20InterPark%20and%20an%20acquisitions%20associate%20at%20Urban%20Growth%20Property%20Trust%2C%20two%20privately%20held%20real%20estate%20companies%20incubated%20by%20Security%20Capital%20Group.%20Cheigh%20holds%20a%20BA%20degree%20cum%20laude%20from%20Williams%20College%20and%20an%20MBA%20degree%20from%20the%20University%20of%20Chicago.%22%2C%22image%22%3A%2231924%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fjon-cheigh-36499512%2F%22%7D%2C%7B%22name%22%3A%22Jason%20Rothenberg%22%2C%22job_role%22%3A%22Head%20of%20real%20estate%2C%20SWIB%22%2C%22content%22%3A%22Jason%20Rothenberg%20is%20a%20portfolio%20manager%20for%20the%20State%20of%20Wisconsin%20Investment%20Board%2C%20leading%20the%20team%20tasked%20with%20developing%20and%20executing%20SWIB%E2%80%99s%20real%20estate%20investment%20strategy.%20%20The%20team%20sources%20and%20manages%20real%20estate%20investments%20across%20a%20wide%20range%20of%20structures%2C%20property%20types%20and%20geographies%20to%20support%20the%20objectives%20of%20the%20Wisconsin%20Retirement%20System.%20%20Prior%20to%20joining%20SWIB%20in%202011%2C%20Rothenberg%20was%20the%20director%20of%20finance%20for%20a%20Madison-based%20office%20and%20mixed-use%20real%20estate%20development%20company.%20%20He%20has%20also%20held%20positions%20at%20the%20Office%20of%20Management%20and%20Budget%20and%20the%20National%20Oceanic%20and%20Atmospheric%20Administration%20focused%20on%20environmental%2C%20science%20and%20space%20policy.%20%20He%20currently%20sits%20on%20the%20State%20of%20Wisconsin%E2%80%99s%20Deferred%20Compensation%20Board%2C%20which%20governs%20the%20state%E2%80%99s%20supplemental%20retirement%20savings%20program.%20%20Rothenberg%20received%20an%20MBA%20with%20a%20specialisation%20in%20real%20estate%20from%20the%20University%20of%20Wisconsin%2C%20Madison%2C%20a%20Master%20of%20Environmental%20Management%20degree%20from%20Duke%20University%20and%20a%20BA%20from%20the%20University%20of%20Virginia.%20%20He%20is%20a%20CFA%20and%20CAIA%20charterholder.%22%2C%22image%22%3A%2232755%22%2C%22linkedin%22%3A%22%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” 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title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
Jon
Retail and office are only 25 per cent of the property market. Today, the property asset class has a material weighting to data centres and technology towers.
We have to deal with the fact that it’s a recession, so hotels for example will naturally be impacted.
Some aspects of property are being uniquely impacted, for example university housing which is normally a defensive asset.
There will certainly be some permanent destruction of the office opportunity, even though advocates of office investment believe physical offices provide benefit relating to talent concentration, culture and collaboration.
The property market, like an economy, is always evolving, with some parts becoming obsolete and some parts becoming more relevant.
Over a cycle, it is best to have a combination of both listed and unlisted property within a portfolio.
We will not necessarily witness a doom and gloom exodus from big cities, but there may be opportunity for decentralised models to be explored.
Jason
COVID has turbocharged changes that were already underway.
It’s too soon to predict the future fate of the office market.
Knowing how to adequately perform due diligence in this environment will be key.
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Poll results
Do you think the office real estate sector has been permanently disrupted?[vc_line_chart x_values=”” values=”%5B%7B%22title%22%3A%22Yes%20(72%25)%22%2C%22y_values%22%3A%2272%22%2C%22color%22%3A%22blue%22%7D%2C%7B%22title%22%3A%22No%20(16%25)%22%2C%22y_values%22%3A%2216%22%2C%22color%22%3A%22pink%22%7D%2C%7B%22title%22%3A%22Unsure%20(12%25)%22%2C%22y_values%22%3A%2212%22%2C%22color%22%3A%22juicy-pink%22%2C%22custom_color%22%3A%22%23f7be68%22%7D%5D”][vc_dfp_ad ad_embed_id=”/30578185/T1F/LEADERBOARD” display=”both” css_float=”none” bottom_margin=”1″]
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