Orange County Partnership - News

Report: Investment Surge Expected in 2021

A report released earlier this month by diversified professional services and investment management firm Colliers International Group Inc. paints a picture of a robust recovery for the global investment market this year. The survey reveals investors are largely optimistic about a market rebound and are planning to expand their portfolios in 2021.


The “Global Capital Markets 2021 Investor Outlook” research report anticipates a 50% surge in investment activity in the second half of the year, pointing to a broad-based renewal of confidence in the property market as a result of recent vaccine developments and continued government stimulus.


“Based on our global analysis, which gives us a bird’s-eye view of investors’ interests and expected appetite, longer-term tailwinds in the property sector remain intact. With a massive volume of equity raised globally and the need for real assets, investors are eager to deploy pent-up capital and pursue opportunities during the year,” said Tony Horrell, head of capital markets | global at Colliers International. “We expect to see movement up the risk curve this year, with investors exploring all types of assets from senior care homes to public infrastructure projects.”


The report, which drew nearly 300 respondents including major institutional investors, listed property companies, sovereign wealth funds, private equity funds, family offices and third-party money managers, indicates 98% of investors across all regions aim to expand their portfolios, with approximately 60% looking to expand by more than 10%. Furthermore, 67% of survey respondents in EMEA and 88% of those in the U.S. are planning their next investment as early as the first quarter of 2021.


Among its findings in the Americas, the report stated, “Investors in the Americas are mostly focused on industrial and logistics assets, with the survey showing that around half of investors in the U.S., and Canada expect core industrial properties to appreciate by 10% or more in 2021. This in large part reflects e-commerce driving demand for industrial space, making it difficult for supply to keep up,” according to Janina Francescutti, senior vice president, capital markets, Colliers, Canada.


Additional key takeaways from the Colliers Global Capital Markets 2021 Investor Outlook report include:


  • Top-tier city offices remain a primary asset target. Investors with international capital find the scale and liquidity of the office sector in major commercial hubs such as New York, London and Sydney appealing. Having office assets that meet health, sustainability and technical benchmarks is important to investors.


  • Logistics and living sectors are thriving. Both sectors were among investors’ top three choices across all regions. Intense demand for these assets will require investors to broaden their geographic focus and build portfolios through joint venture platforms and local partnerships.


  • Opportunities to repurpose discounted retail and hospitality assets.


  • Investors are expecting to see pricing discounts of more than 20% in these sectors. They represent a rare opportunity to acquire core and distressed assets for ambitious repurposing initiatives.


  • Alternatives, platforms and partnerships are playing a bigger part.


  • Rising demand for alternative assets such as data centers, senior living and life science assets reflects broader structural shifts amplified by the pandemic.


To see the full 2021 Global Investor Outlook report, go to: