The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Global Real Estate and COVID-19

Global Real Estate and COVID-19
07 July 2020
 

We are currently experiencing the slowest rate of real estate transparency improvement since the period following the financial crisis of 2007–2008, according to the Global Real Estate Transparency Index.

The biennial index, published by JLL and LaSalle, covers 99 countries and territories worldwide.

Functioning as a guide for companies operating in foreign markets, the index reveals which countries provide the most favourable operating environments for investors, developers and corporate occupiers.

JLL has also produced a paper summarising the effect of COVID-19 on the real estate sector, assessing how it can adjust to a “new normal.”

 

“Sustainability commitments have become the biggest single driver of real estate transparency globally since 2018. As companies demonstrate an unwavering commitment to corporate social responsibility, there is increased voluntary adoption of Environmental, Social and Governance (ESG) measures and greater acknowledgement of the need to create a sustainable built environment.”

–Jeremy Kelly

Director, Global Research, JLL

Increasing Standards in Sustainability and a Growing Adoption of PropTech

 

JLL’s research shows that top-performing “highly transparent” markets, including the UK, USA, Australia and France, are driving higher standards in sustainability. 

Another key driver of transparency is the volume of real estate data now available due to the growing adoption of PropTech platforms, digital tools and big data techniques. 

Although real estate markets have historically faced challenges when implementing new technology, the pandemic is leading to an acceleration in new types of non-standard and high-frequency data, especially relating to health, mobility and space usage.

The findings suggest that the COVID-19 pandemic could fast-track digitisation and stimulate innovation in the use of technology due to the need for accurate and real-time data.

 

The Journey to “Re-Entry”

 

JLL has also produced a report on what now happens as economies start to move out of lockdown, businesses begin the journey to re-entry and the real estate industry adjusts to a “new normal.”

The report considers the global policy response and the practical challenges businesses will face for “re-entry”, as well as capital market implications and sector-specific impact.

 

Emerging Structural Trends

 

In terms of offices, in the short term, JLL considers that the flexible space sector is likely to undergo significant consolidation, although in the longer run it will remain a key feature of global office markets. 

Despite the current switch to mass remote working, the report regards the physical office as crucial in facilitating interaction and collaboration and, ultimately,  employee health, well-being and productivity.

In terms of logistics, JLL predicts that COVID-19 pandemic will force operators to concentrate on supply chain risk mitigation and resilience. It may accelerate trends already in evidence across the sector prior to the pandemic: increased online penetration rates, expansion of online grocery, omnichannel retailing and the integration of technology into warehousing.

Looking beyond the pandemic, JLL concludes that many of the familiar pre- COVID-19 structural trends will be reinforced and will continue to shape the real estate sector. These include growth in corporate outsourcing, rising capital allocations to real estate, urbanization, technology and sustainability. 

The report can be accessed in full here

Picture: A photograph showing a model of a high-rise concrete building

Article written by Ella Tansley | Published 07 July 2020

Share



Related Articles

Infraspeak and Siemens – A Step Towards Intelligent, Automated Building Management

In today’s competitive world, with stakes higher than ever,  facilities and maintenance managers strive to achieve near-zero downtime, operational efficiency...

 Read Full Article
MRI Software Acquires FSI

FSI is now officially operating under the MRI Software brand, after the business was acquired in August 2021. The combined team now provides an expanded offering, as a...

 Read Full Article
How Technology and Smart Buildings Will Support the Daunting Retrofit Challenge

How will the intersection of retrofits, smart homes and digitally transformed building maintenance help the UK to achieve net-zero emissions by 2050? Nik Flytzanis,...

 Read Full Article
Training for FMs – Free Course on Intelligent Maintenance

The IFM Innovators Programme is a free course to help FM and maintenance professionals improve their knowledge on innovation and maintenance. Industry 5.0 is shaping...

 Read Full Article
What is Industry 5.0 and What Does it Mean for FM?

Felipe Ávila da Costa from Infraspeak shares his insights on how Industry 5.0 is shaping the way we create safe and comfortable environments for...

 Read Full Article
Facilio Launches Connected CMMS

Facilio has announced the launch of Connected CMMS, reportedly the only software platform to consolidate all property maintenance, client engagement, vendor management,...

 Read Full Article
Pandemic Mode for Buildings  – The World's Safest Offices

Imagine an office where, in the event of a pandemic, an app will inform tenants that the air conditioning is running on fresh air only and disinfecting UV lamps have been...

 Read Full Article
MRI Software Acquires CRM Solution Box+Dice

MRI Software is to acquire Melbourne-based Box+Dice, adding to its PropTech portfolio. The purchase is a move to help enable real estate businesses to...

 Read Full Article
Home Working Anywhere – The Blueground Pass

A global PropTech startup is making a network of thousands of fully furnished apartments in 15 cities across the globe available with one pass. The Blueground Pass is a...

 Read Full Article
JLL Acquires PropTech Company Skyline AI

In a move to help deliver more powerful insights to its clients, JLL has reached an agreement to acquire Skyline AI. Skyline AI uses unique data sets, AI and...

 Read Full Article