Some of the shifts we’re seeing mark an acceleration, others are cyclical, but it’s never as simplistic as a headline. One thing I’m sure of: We’re never getting back to the way we lived before Covid-19.
Regardless of the shape of recovery, in the wake of the pandemic all classes of real estate will undergo lasting changes. WeinPlus is advising leading national retailers and real estate owners as they adapt their enterprise strategy. Covid-19 may be novel, but our approach is battle-tested. We have a proven track record helping companies change and adapt. Here’s what we see on the horizon:
- Retail and industrial real estate will effectively merge, with massive consequences for the built environment and portfolio strategy. National retailers are at a critical junction where front-of-house and back-of-house needs will inflect, upending our traditional notion of 4-wall-EBITDA. Retailers need to right-size fleets along with cost infrastructure.
- The global office market faces a do-or-die moment: Our expectations of safety, security, and space have dramatically changed, leading to either more space (for social distancing) or less space (as we work from home), but even when Covid-19 fades, our expectations of indoor air quality and sanitation will remain. Office owners need to make the case for relevancy.
- Gamblers have already embraced Internet betting. Now the gaming industry is racing to reverse that trend by restoring a sense of physical safety in casinos. Historically the gaming sector hasn’t embraced online, but that will change as new legislation, partnerships, and destinations emerge. Vice always wins.
- Shifts in demand will trigger new imperatives and opportunities in residential real estate. The Suburban Renaissance is upon us. We’ll rethink multi-generational housing, senior needs, and adapt our amenities to New Retail.
- Once content to manage our operations based on historic “industry standards,” now we’re rewriting them in real-time. How can businesses adjust to enable their people, processes, and systems to reach the undefined future? Make decisions analytically and execute them compassionately.
Now is not the time for legacy approaches to corporate strategy. A fresh, objective perspective is essential if we’re to turn the biggest challenges in living memory into opportunities for growth.
We’re here to help.
— Rachel Elias Wein