- Thu May 04, 2023 11:35 pm
#43558
That brings us back to commercial property and a problem that cannot be overstated.
If demand goes down, rents go down. If rents go down, valuations follow suit, as do dividends. With so many pension funds being (over-) exposed to that sector, the pain is not limited to the usual gamblers and casino cowboys.
Traditionally, the commercial property sector is painfully slow to change. But, there really is no going back to 2019, nor would there ever have been, whether Covid had stepped in or not. Commercial property and city centres are in the midst of a paradigm shift on a scale not seen since the horses were retired.
All the Littlejohns in the world ain't going to change that.
If demand goes down, rents go down. If rents go down, valuations follow suit, as do dividends. With so many pension funds being (over-) exposed to that sector, the pain is not limited to the usual gamblers and casino cowboys.
Traditionally, the commercial property sector is painfully slow to change. But, there really is no going back to 2019, nor would there ever have been, whether Covid had stepped in or not. Commercial property and city centres are in the midst of a paradigm shift on a scale not seen since the horses were retired.
All the Littlejohns in the world ain't going to change that.