The wrath of the Coronavirus has been devastating in contrast to the epidemics and pandemics, the economic blip over the past century. However, there has been a new trend with regards to commercial real estate as an outcome of the Coronavirus outbreak. There has been robust creditworthiness of tenants with a majority of IT ventures renewing the contracts. Moreover, there has been a new introduction of innovative flexible leasing models. Additionally, the way things used to work in commercial space has been redesigned with abrupt changes in the way work was done. There has been a push for mass remote working practices with a complete reorganization in lifestyle. These converging factors have influenced the behavior of the entire market developing new implications for Commercial real estate. The country must prepare for and shape the new normal.
The world was remade after the Coronavirus outbreak. This is true for the Real estate players as well. This paved a way for the CRE to reassess their business expectations, identify and resolve the current business threats. The companies have started to deal with the present scenario, managing continuity and improving liquidity management. The market has also evaluated the need to improve the operations and tenant support. More so with the advent of remote working and technology used since the covid outbreak.
Moreover, the real estate market has emerged stronger than in the pre-COVID period. There has been a key change in the trends for commercial real estate as a consequence of the covid outbreak. The new-age Commercial Real Estate market has redesigned and organized its operational strategy.
The reentry to the physical spaces
As the world prepares to recover and return to live a normal life, Commercial Real Estate must implement effective plans to transition back into physical spaces. The Commercial Real Estate developers must readjust their physical spaces like offices, retail spaces, commercial venture assets to fit in with the latest guidelines and while keeping in mind buyers-tenant’s requirements/preferences around various security and health safety factors. The return to the physical spaces will be leaded by various reasons altogether. One of the key real estate companies in Chandigarh that is offering such features is the VRS Group. They have now come up with a new commercial project in Mohali and residential flats in Chandigarh. The properties developed caters to the current requirement of the market. The increase in demand and supply for the residential projects in Mohali will surely benefit the upcoming Commercial projects in Mohali. This trend is true for all the leading cities of the country.
We will now explore how the CRE has redesigned itself to curb the covid disaster
Promotion of wellbeing and technology use
The pandemic has given the market an opportunity to reassess the operational procedure, a reevaluation of the strategy. The world was not used to or either well prepared for this new way of, ‘Remote working’. There has been an increase in investment by companies across the spectrum towards technology and tools that enhance the virtual working environment. This has promoted the well-being of the employees. Moreover, increased technology usage has helped in automation and in making informed decisions which have been driving efficiency, enhancing the skills of the workers.
Improved cybersecurity measures and data privacy efforts
With the advent of technology, the usage of analytical tools and techniques has helped originations to improve their business. However, this also creates more concerns for privacy breaches in data and security. Thus Commercial real estate ventures must enhance cybersecurity to strengthen privacy measures.
The shift towards tenant engagement and preferences. Focus on Liquidity and capital management
With the rising risks in liquidity, there has been a continual need for the companies to preserve liquidity, reducing the fixed costs, and exploring other refinancing options for capital management.
Continuity in business and enhanced disaster recovery strategy
The pandemic has exposed the company’s preparedness for disaster. It is well evident that most of the companies in and around India were not prepared in response to a disaster and in this case pandemic. It also shows the lack of equipment for employees to work remotely from the convenience of their homes. This has made several companies around the globe aware of the need to react and respond to the pandemic while coming up with a robust disaster management strategy and recovery plans. This will surely help businesses to maintain business continuity in the future.
Thus it is seen that there is a clear shift in the workplace behavior post covid. This pandemic has given companies an opportunity to re-evaluate and redesign their strategy creating new safe experiences for the employees.
