Summary
COVID-19 has collapsed global real estate markets across all real estate classes – residential, commercial, retail, and industrial. While market recovery has begun, it is expected to take time and the outlook remains very uncertain.
The outbreak of the virus and ensuing lockdowns across the globe resulted in the pause or cancellation of construction projects across the entire real estate industry. While these projects are now mostly resuming normal operations, they are significantly delayed – a future challenge that will have to be carefully planned for.
However, the extent to which the negative impact of COVID-19 has affected the industry varies by segment. While demand for retail and office spaces has seen a slight uptick, it remains relatively low as companies favour remote or hybrid work options. On the other hand, the lockdown-induced e-commerce boom worldwide has significantly increased demand for logistics solutions, such as warehouses, across markets.
In addition to this, despite the relatively low occupancy rates currently reported across hotels, a growing interest in staycations or drive-to holidays is promising to keep hoteliers afloat until significant developments in vaccine distribution are made.
When it comes to residential properties, demand has remained relatively stable. There has been an increased interest in properties located in suburban or more remote areas, as many renters and homeowners have chosen to leave larger cities for either medium or long-term timeframes.
How we add value
Cedar has significant experience in working with clients in the property development and management space, including assisting in the development of future business strategy and budgets aligned to the strategy.
We also have expertise in improving the efficiency of property development and vendor management processes, as well as developing leasing and property management processes.
Our human capital practice area is well-equipped with the tools to advise on organizational restructuring and developing key HR processing.
In addition to this, Cedar consultants have extensive experience in looking at IT investments specific to the real estate industry and making recommendations to assist in automation of systems and processes.
After the required analysis and subsequent strategy development, we work with a client over a period of 90-120 days to ensure the plan is executed to the highest possible standards.
- It is critical to develop a transformational business plan focused on significant cost reduction, financial re-engineering, and protection of revenue in the pipeline. Our extensive corporate strategy expertise will help you to develop this and thrive in a dynamic market.
- Revenue protection will be important for companies to recover and bounce back in a post-pandemic world. Cedar can harness its extensive experience in revenue protection, for example through consolidating buyers into fewer projects with revised terms.
- Cost optimization is the need of the hour across the real estate industry. Cedar can assist you in cost take-out involving headcount reduction, vendor and material re-negotiations, project re-phasing, and other related costs. We can also realign your sales & broker network.
- Data-driven project planning and execution is key to maintaining a competitive edge in the real estate market. We have developed a comprehensive toolbox of proprietary technology that is designed to arm you with the deep data-driven insights you need to drive innovation.
- As we see the growing digitization of processes and a higher demand for digital solutions, an actionable digital roadmap will be essential. Our deep expertise in digital strategy and execution positions us well to build a plan uniquely tailored to your needs.
- Real estate legislation differs vastly across countries, requiring country-specific strategies to be researched and developed in detail. Cedar brings decades of experience in entry strategy in complex geographies to build a plan customized to your specific needs and challenges.
