2020 U.S. Property Sector Returns
Source: FactSet 12/31/2020. Past performance does not guarantee future results.
The pandemic profoundly disrupted real estate markets, shuttering doors of retailers, offices, and hotels, and negatively impacting health care property types like senior housing as residents chose to defer occupancy. Increased digitalization trends are likely to remain headwinds to retail and office spaces, but serve as strong tailwinds for growth in areas like industrial properties, cell towers and data centers. Given that COVID-19 is an exogenous shock, not part of the economic cycle, broad vaccine distribution combined with an accommodative political backdrop with supportive stimulus and spending should help the sector rebound, particularly in select property types where there is high pent-up demand—such as hotels and gaming & leisure.
PERFECT STORM FOR SELECT PROPERTY TYPES