The real estate sector has historically been stable as an investment class and many believe it is immune to the rapid adoption of new technology. This thought process will create the allure of risk mitigation, but I caution you to inspect how technology will affect your real estate investment opportunities. Naturally, all real estate asset classes will be affected differently, and asset classes like multifamily are more insulated due to the defensive characteristics and the fact that shelter is a basic need.
There is a fundamental shift in the office sector as companies realize that productivity could be increased by eliminating commute times and that remote opportunities provide value for the employee and the employer. Employees are now able to take advantage of low-cost environments and companies could handpick employees and adjust pay rates based on the cost of living in these locations. Office space becomes a premium that many companies will no longer need as the working class embraces the new normal of Zoom calls, Slack channels, and other mediums of communication and oversight. These technologies were not built to sustain this mass adoption, and as they iterate to account for demand the speed of adoption will multiply.