Should we rethink the future of retail real estate?

SDA Bocconi Insight - Zoom on - G. Morri, P. Malaspina

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The health crisis linked to Covid-19 has led countless commercial activities to close while triggering a strong surge in e-commerce. The short-term consequences may be clear, but at the same time fairly irrelevant since purchases in physical stores have quickly ticked up again. What might be more interesting are the medium- to long-term effects: Is a systemic crisis in physical commerce a real possibility? Could this lead to a (more or less drastic) drop in the value of retail real estate?

 

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