The commercial real estate market could see a big rebound in 2021. Here are 5 sectors that will be in huge demand.

There has been some talk about whether we will be returning to offices once the peak of Covid-19 pandemic is behind us. While this remains to be seen, there are other sectors which are performing strongly during this uncertainty.

Supermarkets / Convenience stores are becoming extremely sought after. Often unfairly categorised in the struggling retail sector, last year saw a clear dichotomy, as investors piled in to buy supermarkets. Put simply, we need food, and covid-19 reminded us of its importance.

Logistics are real estate’s growth stock. Prime logistics assets let on long leases are achieving strong pricing amid the spike of e-commerce. Can this pricing be sustained? Who knows, but there continues to be flood of capital chasing this sector.

Healthcare has been a strong performer with U.K. demographics supporting the need for greater carehome facilities. Typically let on long leases with index linked mechanisms, you can be assured to have an investment which offer you passive and guaranteed rental performance.

Nurseries / Education are a niche, but have shown to be an interesting investment. Providers are likely to sign long term leases on buildings, offering investors with relatively safe income returns. In times of uncertainty, risk averse have proven to be highly desirable.

Retail Parks have experienced some challenges of late, but 2021 could see the resurgence of investors now that pricing have been in correction. The pandemic demonstrated that occupiers like B&Q + B&M’s are vital. I expect investors chasing high yields to be back in full force.

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