Comparing with retail, we have the counterexamples of shopping malls being converted to logistics and data centers.
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United States real-estate investors have spent the last several years on uncertain footing, facing wild swings in the economy and even more drastic pivots in how—and where—people work.
“The real estate industry is facing tectonic changes: inflation and interest rate increases, and technological shifts,” says Efraim Benmelech, a professor of finance and real estate at the Kellogg School. “As technology changes, the demand for certain properties changes.”
[This article has been republished, with permission, from Kellogg Insight, the faculty research & ideas magazine of Kellogg School of Management at Northwestern University]