The investment manager behind Custodian REIT has warned that “a simple return to pre-Covid-19 pandemic normality by early 2021 appears unlikely”, as a slump in property valuations since the crisis began led to a halving of full-year profit.
Custodian Capital’s Richard Shepherd-Cross said: “It is too early to assess the long-term impact of Covid-19 on the commercial property market but we believe it may accelerate pre-existing trends in the use of, and investment in, commercial property.
“We expect to see a further deterioration in occupational demand and investment appetite for secondary retail, an increase in occupational demand for flexible office space and a continuation of the growth of logistics and distribution.”
