The coronavirus outbreak has accelerated a secular change that’s been happening in the commercial real estate industry. The retail apocalypse, brought on by the adoption of online shopping, has impaired the prospects of retail REITs. Meanwhile, the transition of business, education, entertainment and wellness from the physical world into the cloud is boosting data and communication infrastructure REITs. Those two trends have picked up pace during the “Great Cessation”, presenting the opportunity for a real estate pair trade that’s expressed by being Long Data Center REITs and Short Retail REITs.
Related ETFs: Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR), Pacer Benchmark Retail Real Estate SCTR ETF (RTL)
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