April 2020 | Leadership Insights – In just a matter of weeks, the global health calamity caused by the novel coronavirus has upended business as we knew it across all real estate sectors. Office buildings, once teeming with workers packed into cubicles, now sit empty and quiet. Malls, previously bustling with shoppers freely spending money, have closed without timelines for reopening. And destination centers are all but shuttered.
Meanwhile, real estate companies are understandably concerned about whether they will be able to collect rents, leading many to proactively work with smaller shop owners to defer or even wave payments. Real estate firms (like so many other types of businesses) have had to quickly mobilize employees to work from home which, in many cases, has required stopgap implementation of new technologies and practices.
This has been a radical – and, no doubt for many, an uncomfortable – shift from the traditional approach where everyone is in an office five days a week, using tools, systems and processes designed for that environment. Forward-thinking executive teams are grappling with what the return-to-work landscape means for their enterprise and the underlying operating platform.
As challenging as the crisis has been, though, real estate is at the center of the recovery. It has been and will continue to be where people come together to work, experience art and entertainment, eat and sometimes shop. But a lot has changed forever. Some real estate assets will never recover while others will be repurposed to accommodate the new normal.
As companies make adjustments to keep functioning in the short-term, equally as important is positioning themselves to perform long-term. C-suite executives, especially CFOs and CEOs, have to think beyond what’s happening today and ask the critical questions that are key for thriving in a new, post-pandemic world.
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Is the current operating platform still appropriate, i.e., capable of scaling to enable the organization to perform optimally?
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Does our asset management and allocation methodology need to adjust to take strategic advantage of emerging conditions across sectors?
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How do we fully realize the modern digital workplace and break away from our legacy model? How can we leverage the collaborative tools to create a competitive advantage?
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Are employees still willing to be tied to a physical office for every hour of every day? Will they feel safe and are they even most productive working that way?
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Will our current platform support a new workplace environment? How do the tools and technology that we are using need to be reconfigured?
RealFoundations can help real estate companies think through the design of their operating platform for the new normal that is taking shape. Our proven methodology ensures that the operating platform supports the intrinsic work of the organization and aligns to the business’ goals for executing the work. In turn, this means that the most appropriate people are using the right tools to most effectively and efficiently accomplish the right work on behalf of the enterprise.
Connect with Us
To find out more about how our team of experienced consultants can create a blueprint for what your organization should be doing now to thrive going forward, contact our Chief Revenue Officer John Seaton by email or call +1 214 292 7166.
About RealFoundations
RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.
