What happens when all of the advantages of living in the city go away and new disadvantages of expensive urban density are revealed?
Activist real estate hedge fund manager Jonathan Litt, founder and chief investment officer of Land & Buildings believes it means a complete rebirth of the American dream of home ownership. Litt has spent the past 25 years as a strategist and an investor in both public real-estate securities and direct property ownership. Litt notes the new “Work-from-Home“ experience today is far better than previously experienced. Productivity is higher, new technologies create a much better experience than the post September 11th version.
The high cost structures in big cities like New York and San Francisco likely means new challenges for real estate in those business centers. Investing in office REITs will be “challenging” according to Litt’s expectations. His biggest bets are in the suburban single-family home space. He is looking at the past 5 years population bleed of about 1% from urban centers to increase somewhat, as post-pandemic millennials and city-dwellers rediscover the advantages of Suburbia.
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Next week, we speak with Luke Ellis, CEO of Man Group, a global active investment manager with $104.2 billion in AUM.