New Study Reveals 87% of Institutional Investors Expect More or Similar Investment Levels in Commercial Real Estate in 2021 Compared to 2020 - Seite 2

The survey revealed expectations for a far slower recovery of the retail and hospitality sectors:

• Only 1% of respondents expect a quick revival of high street retail and mall shopping. For shopping malls, 70% predict an L-shaped recovery.
• Fifty-eight percent of respondents foresee a U-shaped recovery, and 16% of respondents expect a V-shaped recovery in neighborhood shopping.
• The hospitality sector is projected to make a slower rebound, with 75% predicting a U- or L-shaped recovery for that asset class.
  

The 2021 Outlook
In general, U.S.-based institutional investors expect transaction volume will be significantly higher in 2021: 44% of respondents believe 2021 transaction volume will be above average or at record highs if there is a cure or vaccinate by the end of 2020.

The research also revealed that because other kinds of investments will be more turbulent as a result of market volatility, institutional investors may remain keen on long-term commercial real estate investment: 87% of respondents said they thought there will be more or similar amounts of institutional investment in 2021 than in 2020.

With 38% of investors seeing distress in the commercial real estate market in 2020 and 54% expecting to see it in 2021, institutional investors foresee new opportunities in the marketplace.

“Institutional investors have the capital and fortitude to play the long game and weather the storm, which will create opportunity,” Herrenkohl said. “Real estate continues to be a good hedge for many investors looking to manage risk and diversify their portfolios.”

About the FTI Consulting/REFI Study
REFI Global conducted the survey for FTI Consulting over a two-month period in partnership with REFI’s July 2020 Global Investors Virtual Summit among 64 U.S.-based commercial real estate investment professionals, including fund and investment managers, REITs and other institutional investors. These findings and insight from FTI Consulting are the basis of a new white paper, How the COVID-19 Pandemic has Impacted the Commercial Real Estate Landscape in the Short and Long Term.

About the FTI Consulting Real Estate Solutions Industry Practice
FTI Consulting Real Estate Solutions professionals have the industry expertise and experience to help real estate owners, users, investors and lenders better navigate the market’s complexities and manage its inherent risks. As unbiased and independent advisors, FTI Consulting represents leading public and private real estate entities and stakeholders, including REITs, financial institutions, investment banks, opportunity funds, insurance companies, hedge funds, pension advisors and owners/developers, offering real estate consulting services that help align strategy with business goals.