Trends Influencing Real Estate Investment Returns

This report outlines three significant trends currently impacting real estate investing returns. First, it discusses the anticipated growth of the data storage and infrastructure market, projected to increase by 160% by 2034, driven by the rise of artificial intelligence and cloud platforms. The report notes that demand for data centers is high, with major companies increasing capital expenditures, while supply remains constrained due to power infrastructure limitations. Second, the document highlights demographic changes, specifically the doubling of the American population over 85 by 2040, which is expected to boost demand for senior housing and care. Occupancy rates in assisted and independent living facilities are rising, while new construction is declining. Lastly, the report addresses the retail sector's evolution, emphasizing the shift towards omni-channel retailing, where physical stores support online order fulfillment. This trend is resulting in high occupancy rates and rent growth for select retail properties, despite previous predictions of retail decline.