Industrial Real Estate
Prior to COVID-19, the growth of ecommerce was fueling an industrial real estate boom. The pandemic and lockdowns only accelerated those trends as consumers turned to online shopping for food, clothing, exercise equipment and other goods. Various drivers reveal the industrial sector will continue to play a key role in fostering socioeconomic resilience.
Waste and Wastewater Management
As U.S. population growth and economic activity continue, effective waste and wastewater management remain critical to public health. Bolstered by the trajectory of economic growth and public policy, this essential sector may present investment opportunities worth considering.
Social Infrastructure
While financing social infrastructure assets is generally considered a public sector responsibility, private capital often supplements financing needs. Several market factors point to the expansion of private investment opportunities in healthcare, education and transportation infrastructure designed to support communities.
Energy Transition
A revolutionary opportunity is taking shape in the energy industry as energy producers pursue a transition to renewable sources. Renewable energy promises to transform power generation, transportation, infrastructure and more as overwhelming government and business support fuels demand.
Are Offices Dead? Not by a Long Shot.
COVID-19 has accelerated the trend toward working from home, exposing both its benefits and limitations. Recent studies reveal that employees and executives alike desire a central workplace for collaboration and social interaction, while office work schedules and layouts continue to evolve.
The Office Sector
While it remains too soon to determine the long-term impacts of the pandemic on the office sector, office users are already reassessing how they use space and how much they’ll need in the future. Office investments in the life sciences industry and those in gateway markets may provide strong opportunities in the near and medium term.
Benefits of Vertical Integration
Some real asset owners and operators have adopted a vertically integrated structure, with in-house teams responsible for a broad range of functions. We believe vertical integration can drive value creation, generate efficiencies, and help align all parties with a unified goal of delivering the best results.
A Closer Look: Exploring Real Estate, Infrastructure and Credit in the Aftermath of COVID-19
A high-level overview of these three sectors based on the current market, with a thoughtful analysis on where we believe opportunities may lie going forward. While there are many unknowns, our experience through a variety of market conditions and cycles has positioned us to provide insights across the sectors.
Digital Infrastructure
If real asset investors weren’t familiar with the opportunity presented by digital infrastructure prior to the onset of COVID-19, the demand for high-speed broadband to facilitate virtual meetings, remote learning and streaming services has underscored the importance of robust digital infrastructure in daily life.
Urban Real Estate: Holding its Advantage Over the Suburbs
Certain gateway markets have experienced outmigration to suburban markets due to dislocation caused by COVID-19. However, many secondary cities have benefited from population and job growth during this time. We believe that thriving urban markets will continue to present investment opportunities in the years to come.
Hospitality Sector
While the hospitality sector is experiencing challenges in connection with the COVID-19 pandemic, we believe there are opportunities in the short-term and that sector performance will return to pre-pandemic levels once travel becomes the norm once again.
Securities distributed by affiliate broker-dealer: CCO Capital, LLC, member: FINRA / SIPC
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