Portfolio manager of Fidelity Global Real Estate Fund, Steve Buller, shares his perspectives on global commercial real estate and where he is finding opportunities as the global economy reopens. Steve shares that how inflation and interest rates actually affect global property stocks is more in perception than in reality. There is very little statistical correlation between global interest rates and the performance of global REITs. Steve notes that there are few specific geographical opportunities; however, there was a big bounce in the reopening trade sectors such as retail, hotels, and assisted living. Steve unpacks the future of office spaces and guesses that 80% of office space will be long-term and 20% will be flexible or coworking space. He believes that there will be a sizeable impact on the demand for office space over long periods of time because of remote working.
Recorded on June 25, 2021.