Commercial Real Estate Strategies - A New Chapter Begins
Authored by Michael Pacini
November 23, 2020
Regardless of your industry, if real estate is a component, your views on occupancy costs have likely changed during the pandemic. For those paying attention, this presents significant opportunities in the foreseeable future.
In short, smaller space size is better and more locations can be advantageous depending upon the concept. At the other end of the spectrum, perhaps physical locations are no longer necessary at the same scale as once deemed necessary prior to the pandemic.
While industrial warehouses will continue to expand, the office, retail and restaurant sectors are primed for realignment. With the pandemic forcing businesses to innovate, virtual offices to virtual kitchens are helping to leverage existing facilities and reduce costs; operating models are being modified on the fly and functional priorities are being redefined. As a result, businesses are enjoying increased productivity and incremental sales.
In a manner of speaking, the coronavirus pandemic has forced us all back through basic training camp, regardless of rank. Overall, the result has been transformational for every corporate discipline. We are controlling most cost centers better and efficiencies from best industry practices are manifesting in organizations, big and small. Moreover, we are reexamining our respective "purposes" and affirming whether they are clear, meaningful and authentic.
As we look to -- and hope for -- a brighter future, there will indeed likely be many more winners than losers. In fact, it is my belief that lessons learned from the pandemic will help to create the next wave of generational wealth.
Stay tuned for drill-downs into various industries in future articles. In the meantime, heartily embrace bold new ideas and welcome change and reinvention. One lesson we've surely all learned through the COVID-19 crisis is to live it up!