Real Estate in
the New Reality.

A new reality for the real estate sector — one where digital transformation, enhanced flexibility, trusting relationships and a holistic approach to ESG considerations are required to deliver true competitive advantage to real estate owners, investors and stakeholders.

There is little doubt that COVID-19 has brought much uncertainty to real estate investment, but it has also solidified several ongoing trends: the digitization of work, the transformation of physical retail, and the shift towards ESG considerations. These trends will have a significant influence on how real estate markets will fare over the coming years, and understanding their longer-term impacts will be key to future success.

Digital transformation is key.

One of the biggest legacies of the Covid-19 pandemic is the acceleration of digital transformation. The impact of digitization on asset classes such as office, retail and leisure space cannot be underestimated.

ESG is important.

Across all real estate sectors, people are looking for truly sustainable assets and products. Real estate investors will need to consider what that means for tenants, investors and other stakeholders.

Invest in trust.

Every action speaks volumes about your family office. The need for trust between tenants and landlords has never been stronger. Focus on building relationships and improving communications to ensure you are working together with key stakeholders.

Flexibility & Resiliance.

While markets remain opportunistic, everyone is looking for agility and flexibility. In this environment, data and analytics, combined with keen scenario planning, lead to more strategic decision-making.

Assess the M&A Environment.

With significant investment capital still waiting on the sidelines, asset managers, private equity

and sovereign wealth funds are looking for new acquisitions.

Traditional subclasses and the

rise of non-traditional subclasses.

Real estate is typically divided into four traditional subclasses: residential, commercial, industrial and undeveloped land. In addition to these traditional subclasses, student housing, medical facilities and assisted living communities are considered non-traditional classes and are gathering increasing attention from large investors, including family offices.