2021 Commercial Real Estate Outlook | Deloitte and Touche
Jim Berry and Kathy Feucht, heads of Deloitte & Touche’s U.S. and World Commercial Real Estate divisions, respectively, say that commercial real estate companies know they have to digitize in today’s market, but there are some large-sized obstacles in their way.
2020 saw a lot of shuffling in the way CRE companies have been doing business. The Covid-19 pandemic has necessitated the closing of a lot of physical offices due to lockdowns, and a lot of focus on the safety of employees as things re-open is much more center stage than before. Especially for the larger companies, the logistics of all this has been exhausting.
Deloitte asked 200 executives in CRE — investors, brokers, owner/operators, and developers — how well situated they are to survive in the current economy, how they are planning to recover over the next 12 months, and also how they plan to expand and thrive in the longer-term future.
The answers they got were revealing. Many of these folks feel that their companies may not be prepared to handle the upcoming challenges as the industry struggles to adjust to long-term challenges.
>>> Less than 50% of those questioned felt that digital tenant experience was being handled competently by their organization.
>>> Only 41% said their company was up to speed with technology as it pertains to job roles, skill requirements, and cutting edge business processes.
>>> Only 1/3 of these folks believed that their particular organization has the resources and skills to operate in a business landscape that has been transformed by digital technology.
The problem seems to be that two things are converging at once. The economic situation caused by the pandemic has created inertia just at the time when these companies need to break through all that and move into a rapid-recovery phase if they are to keep abreast of the technological changes happening in their industry.
“Research suggests that a diverse and inclusive workforce leads to higher productivity, creativity, profitability, employee morale, and a stronger brand. However, only 46% of respondents report being focused on increasing the level of diversity in hiring, development, and leadership. As companies reinvent their talent function, leaders should make diversity and inclusion a foundational value by strategically infusing it into all talent actions.”
2021 Commercial Real Estate Market – A Year For Rapid Digitalization
Just as 2020 has been a game-changer in the world of Commercial Real Estate, Deloitte says, “2021 could be even more so; the critical decisions and investments leaders make now could come to fruition over the next 12 months. They should strive to be digital—optimizing business, operating, and customer models for a digital environment. Rapid digital transformation will likely be needed to build operational resilience, maintain a strong financial position, develop and retain talent, and create an enabling culture.”
Commercial Real Estate