In a matter of weeks, thousands of lives changed in a way they had never imagined. Physical distancing has changed the way people inhabit and interact with others after the outbreak of the virus. This is the first time in modern memory that we are witnessing a transformative and lasting behavioral changes.
Real estate investment has seen its fair share of change too. Now is the time to come up with a strategy that will help cope up with the transformative challenges that the future of real estate currently carries. Here’s something we will be witnessing in the post-corona world:
- Centralizing cash management:
Real estate has been highly decentralized, where many cashflow decisions have been made at the property level. But the crisis has warranted the need for more centralized direction on property-level cash management. In the past, few properties & companies took a lean-enterprise mentality toward capital & operating expenses. Those who adopt the lean approach to eliminate inefficiencies, can buy themselves extra time to work through uncertainty.
- Making a tailored, informed decision:
With scores of tenants asking for lease concessions and abatement, there has been a need for taking well-informed, tailored decisions before leasing properties. You need to consider the safety and well-being of your tenant. Onwards, you will have to take such uncertainties into consideration and have a clear game-plan for what steps need to be taken if we are faced with a similar situation. This pandemic can be your guide for decisions you will be making in the future.
- Digital leap:
With social distancing in place, every business is trying to go digital as it has become the new norm during this self-quarantine period. Within the real estate investment arena, you will need to invest in digital marketing and leasing processes, with availability for virtual open houses and showings through virtual and augmented reality. These digital offerings will help in creating a better brand value while meeting the needs of your audience.
- Rethinking the future:
There is a need to think ahead when the crisis is over. Strategic review processes aim to understand how real estate usage might change in the future. Rather than focusing on traditional economic or customer-survey-driven approaches, there needs to be a shift in focus towards looking for answers from psychologists, sociologists, futurists, and technologists. Will there be a need for a larger workspace after the pandemic? Will there be a fear in people of riding in elevators or living in condominiums? While the uncertainty reigns, engaging a range of creative personnel and using new methodologies like in-depth design interviews, we may be able to find new and more predictive insights.
What does the future hold for real estate investments after the pandemic? Only time will tell. With a strategic point-of-view, you will have to start working towards it right away. We at Perfect Real Estate Investments will always strive to provide you the best in the market. You can always approach us for the best deals and make investments that help you grow further.