BlueSky Thinking Summary

The U.S.

real estate landscape is changing dramatically due to technological innovation and a shift in patterns of work.

In a recent discussion among industry leaders, several themes developed: Traditional office spaces endure decreasing demand as remote work reshapes office dynamics;

some spaces are becoming irrelevant and may need to either be reimagined or demolished.

On the flip side, industrial and logistics are booming due to e-commerce growth, with shorter leases and less capital required.

As the economy enters uncertain territory, investors are now seeking these sectors and alternatives—such as data centers—for better returns.

This conversation was truly characteristic of a shift from broad investing to strategic asset selection, with companies like Amazon streamlining for efficiency.

While a sector is getting adjusted to these changing trends, the moot question remains on how to adapt both the technology dislocations and economic cycles and maximize investment potential in new evolving real estate segments.