Hodes Weill's 2022 Market Commentary
Ten Takes on a Topsy-Turvy World
Now, just when we thought it was safe to get back to “normal”, 2022 is starting out just as 2021 began. While COVID fears are starting to wane, other uncertainties abound. There are questions about the sustainability of economic growth, substantial inflation for the first time in forty years, the depth of tenant and consumer demand, the future of business travel, the free flow of capital globally, and access to investment opportunities in a world that is increasingly creating barriers.
Investors have been turning their outlook inward, investing closer to home, and lately showing more concern about rising seas than the rising tide of authoritarianism that may impede (or at least complicate) future growth. At the asset level globally, the market continues to assess if yields can go any lower; how many data centers, life science facilities, industrial and multifamily assets can be built and absorbed, and at what point the spread between in-favor and out-of-favor sectors reaches an inflection point.
Careful, objective observation and constant re-testing of assumptions is critical. We should never be complacent that what’s past is prologue. The pace of change and catalysts for change are growing exponentially. We are regularly humbled by our inability to see all those things that look obvious in hindsight.
This is the 12th year that Hodes Weill is presenting its annual Market Commentary. While many organizations provide forecasts, we deliberately call this a Commentary. We ask our 34 global professionals to reflect on both dominant and overlooked trends affecting real estate and real asset investment management. We challenge ourselves to question “conventional wisdom.” This year, dynamic views on ESG, nascent and traditional property sectors, and industry trends were on our minds. Given that we launched our Real Assets business last year, two of our commentaries are on infrastructure.
In summary, we hope that our Market Commentary helps you to make sense of the markets, re-think some of your basic assumptions, and enables you to do your job more effectively. We welcome your feedback and look forward to engaging with you (in person!) in the year ahead.
View our full market commentary below: