A Successful Property Investor Says Offices Remain a Good Bet

In London, Ontario's major market, the head of off-market real estate claims that he expects to stay in demand in office space, even as the Covid 19 crisis has left its mark.

"It is hard for me to see the whole idea of space vanish, http://edition.cnn.com/search/?text=we buy houses that people will no longer https://mjsproperties.ca be able to pay for it," said MJS Property Investments, which manage the $30 billion real estate portfolio of Norwegian wealth fund.

A increasing number of companies have announced plans, in which the arrangement will reduce stress levels and, in some cases, even increase efficiency after the crisis is reduced, to continue working from home. That raises concerns about the future of offices as an all-embracing characteristic of life.

But Matt Scott says that in the opposite direction there are some factors. The requirement to distance themselves from social matters includes that those who do need more space around them, even if fewer people choose to return to offices. In addition , employees returning to offices will still have to make lectures which may be difficult if there is insufficient space.

Matt Scott said in a telephone interview on Thursday after the fund published a study of its first decade as an investment company in real estate. "You might have competitive effects."

In the next decade, it is likely that the immobilisation unit of the wealth fund will see returns below 7.6% annually, following costs. Still, low interest rates should continue to promote immobilisation prices, both because real estate is alternative to low price investments and because, according to the fund, borrowing is probably still cheap.

"The returns we've seen last decade are likely to be difficult to replicate," said Matt Scott. "But our investments are fairly confident in delivering the real return after costs of 3 percent, or better than the expectations of the fund."

Major funds that own properties, including Paris, London , New York and Tokyo, in eight major cities will remain a net buyer and Matt Scott said Covid crisis and its consequences might provide opportunities.

"We should offer liquidity in turbulent times rather than remove it. This is one of our strengths in the long term, "he said. "I hope that interesting opportunities will arise, of course, as an investor."