Deep Dive: Alternative real estate strategic during pandemic

Low correlation with global economy

Michael Steingold, director of private markets at Russell Investments, dives into the property industry

Alternative real estate sectors, such as student housing, life sciences, data centres, medical offices, healthcare and self-storage, have played an increasingly strategic role in investors' portfolios in recent years. The secular growth trends associated with these sectors provided a tailwind during the pandemic as traditional sectors such as office and retail faced existential questions about their future viability. Further, they typically have low correlation with the global economy, which has often proven to be valuable during periods of market disquiet. We were reminded of the diversifi...