July 28, 2020

Brisk suburban activity might suggest residential real estate is in rude health but, with finance tightening and weak urban activity, the momentum won’t last. Cashflow and debt are huge problems for commercial real estate and city office space could be impaired for years as firms embrace new work practices. Not only will that imply real estate is going to be a drag on growth short-term, but the ubiquitous presence of real estate-related assets in most portfolios requires some careful reassessment.