Disruptors in the real estate market

Andrew Baum took part in a JLL client event in Sydney where he discussed the biggest disruptors in the property industry with a focus on co-sharing office space operators.  Competition for traditional core assets in global markets has pushed pricing to levels where returns are likely to be significantly lower than has historically been the case. The risk for investors in traditional sectors has also changed with new occupiers (for example, WeWork) significantly changing the way these assets should be valued and managed.

An imbalance between supply and demand presents an opportunity for investors to allocate capital towards creating much needed space to fulfil modern society’s needs.   He predicted that they could one day merge with landlords as a one-stop shop for tenants.

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