Insights by Thornburg IM

Rethinking Real Estate Opportunities and Risks


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  1. "While most real estate indices are still showing double-digit gains over the past year, the overall pace of growth across major U.S commercial properties has already decelerated."
  2. "We believe that certain segments of the real estate market feature attractive long-term fundamentals. This is especially true for property types that can benefit from inelastic demand, shorter lease terms, and pricing power that can keep up with inflation."
  3. "During the pandemic, consumer preferences continued to shift toward the convenience of online shopping versus at brick-and-mortar stores. Although this has since reversed, we anticipate a continued bifurcation of performance within the retail sector, with retail asset type and location driving performance."