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Commercial Property & COVID-19: Which asset classes remain strong?

In a time of unprecedented challenges for the commercial property industry some asset classes have managed to maintain stability.

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Massive increases in online shopping requiring support of warehouse and logistics spaces helps industrial assets continue their strong performance.

As reported by RealCommercial, there are some asset classes which have been able to maintain a position of strength, and even grow stronger, notwithstanding the challenges that the COVID-19 pandemic has thrown the commercial property industry.


Industrial Property - Stronger than Ever

Powered largely by a huge increase in online shopping and the warehouse and logistics space it requires, industrial assets are well-placed to continue delivering for investors. Knight Frank associate director Tom Ryan the statistics speak for themselves, with demand remaining high. “The buzz word is industrial – everyone seems to be buying in industrial,” Ryan says.

Small (Office) Space, Large Returns

Office workplaces have been among the most impacted during the pandemic as millions of people work from home, but Ryan says certain office categories have performed impressively. “I think the biggest success story for us is our strata office team,” Ryan says. “They’ve continued to outperform and do really strong deals. In June alone they did about six deals, so that lower end of the market has really held up.

Quality is Key

The pandemic has given many buyers cause to pause and be more strategic and selective with the commercial properties they purchase....assets with long leases that will provide more stability have come to the fore as investors seek to ride out the coming years with some security. “We’re certainly seeing now through the pandemic that investing in something that’s going to give you long-term, stable income is the focus on people’s minds. “Even though there have been some really uncertain circumstances going on economically, the market is still performing and there are a lot of buyers out there still looking to transact commercial assets.”

Read the article in its entirety here.


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