Like many of our investment management colleagues, at Principal Real Estate Investors we have noticed increased interest and questions from our investors on the topic of climate risk, whether through informal discussions or detailed RFP inquiries.
On March 22, 2019, the U.S. yield curve briefly inverted, with the difference between the three-month and 10-year yields turning negative for the first time since August 2007.
On the ground real estate fundamentals are supportive of a steady, balanced growth outlook for REIT earnings on average. Growth across sectors, countries, or companies can be quite divergent of course.
With similarity to residential property performance, alternative classes like student housing and senior living offer a different investment profile to traditional asset types due to the less cyclical nature of their demand.
The future of the office market has been at the subject of much debate and consternation among commercial real estate professionals and investors over the past decade.