The impact of the pandemic on real estate has had a great shock on many sectors. The  financial stress has already started to shift from tenants to property owners and their lenders. How people work, live, and play has likely changed forever. How should investors interpret the impact and understanding the bifurcation of the market?


Mary Power, Senior consultant, JANA Investment Advisers

Bryan Sanchez, Chief investment officer, Lionstone Investments

Moderator: Alex Proimos, Head of institutional content, Investment Magazine


Key Takeaways

  • With Covid-19 bringing huge dispersions to the performance of different real estate asset classes, real estate investment firm Lionstone Investments is using data to inform its investment strategy and chose which markets are better poised for growth.
  • Speaking at the Investment Magazine Fiduciary Investors Symposium on Wednesday, Lionstone CIO Bryan Sanchez explained a strategy that uses US labor market data to make sense of the country’s real estate market.
  • Sanchez looked at which of 283 job categories are fastest growing and earning the most money–and in particular thriving during Covid-19 and driving the digital economy. He then determined which cities had the most workers in those jobs, along with the fastest growth in those sectors.
  • With the growth of the digital economy, companies are increasingly choosing to locate to cities where people want to live, as these cities attract the best human capital, Sanchez said.
  • And most people, particularly those thriving in the digital economy, want to access all elements of their daily life within a 30-minute commute which could be by foot, bike, public transit or car, he said.
  • With enormous dispersions opening up between sectors such as industrial and retail property, Australian investors will be increasingly looking offshore for real estate opportunities, said Mary Power, senior consultant at JANA Investment Advisers.

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