[ARTICLE] Will You Be Caught When The Tide Goes Out?

SystemSystem Administrator admin
edited March 2019 in General Discussion

Comments

  • Paul_BaileyPaul_Bailey Member

    Great post Selina.

  • Ross_BraithwaiteRoss_Braithwaite Member
    edited March 2019

    Some great points in your article. I agree that those investing in the right operational and strategic foundations now will weather the invevitable downturn of the cycle better.

    Owners currently experimenting with space-as-a-service concepts and investing in data analytics will better understand customers and their behaviour, and build stronger relationships.

    Owners providing traditional ‘homogeneous’ space only and expecting to rely on the old mantra of location to secure long leases with occupiers will be caught when the tide goes out.

    We are now moving more to a model where the owner takes on greater risks in running the building, which in the UK were previously all the tenants responsibility. As you point out many building owners will struggle to reduce energy and other costs if they haven’t invested in understanding these areas.

    Given income will be the key driver of property returns when capital growth slows or turns negative it will be more important than ever to maintain occupancy and reduce costs at that point, leveraging the technology to do this.

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