Source: insurancebusinessmag.com

According to Goldman Sachs Asset Management (GSAM), global insurers are looking to increase investments in commercial warehouses over office space.

With more employees working from home due to COVID-19 related lockdowns, many companies are reassessing their need for office space – a trend that could impact office rents and occupancy rates. The insurers therefore hesitate to investment in “undesirable” real estate – including both office space and retail properties because such investments have become riskier.

Concerns about COVID-19 have also increased the demand for warehouse space as more customers move to e-commerce sites to avoid making trips to brick-and-mortar stores.

Despite many insurers wanting to switch their investments, it’s hard to divest from real estate assets during the pandemic, Mike Siegel, global head of GSAM Insurance Asset Management said.