Ripe for reinvention
Is it time to repurpose your real estate portfolio with flexibility, technology, sustainability and impact investing in front of mind?
Investors and developers are increasingly repurposing space across their real estate portfolios for a change of use because of new living and working habits among millions of people. Office spaces are being redeveloped with hybrid work models and new technology in mind and shuttered retail stores are being repurposed into logistics or housing to cater to new community preferences.
Meanwhile, sustainability has reached the top of the real estate agenda with energy efficient buildings generating a premium. Investors are increasingly accountable for the social impact of their decisions and are balancing their portfolios to include impact investments and meet Net Zero Carbon targets - 69 percent of investors say that sustainability is now a higher priority than in 2020.
Investors at the forefront of these trends, who understand the opportunities, risks and costs across their real estate portfolio will build resilience to withstand future social and economic shifts.
“In the right locations, where economic fundamentals, building infrastructure and demand aligns, vacant retail space will become highly sought after for development.” Jon Neale, Head of UK Research
Reasons to repurpose
Focus on sustainability and impact investing
As investors become increasingly accountable for the wider social impact and social responsibility of their decisions, there will be a shift towards the inclusion of impact investments across their portfolios. Energy efficient buildings are gaining in importance and will generate a premium.
Cater to demand for hybrid work-live-play
Lines are blurring between work and life and hybrid real estate models are triggering a need to reassess the experience on offer in offices, shopping centres, hotels and other operational asset classes. Investors who repurpose existing assets with flexibility and technology at front of mind will outperform.
Build resilient portfolios fit for the future
The search for stable income streams is the primary driver among real estate owners and investors to repurpose their assets for new uses. Forward thinking investors will revaluate properties for a change of use to guard against future social and economic shocks that may impact the performance of their portfolios.
New wheels for vacant office space
Investors need to reposition, diversify and repurpose
Reposition, diversify and repurpose your assets and portfolios.
Traditional investment approaches are being challenged and investors need new strategies to drive returns and reduce risk.
Mitigate risk and generate greater returns.
Investors will deploy capital in new sectors and locations to mitigate risk and drive long-term growth.
Recalibrate your asset and capital strategies.
Investment and capital strategies suited to the pre-pandemic landscape may no longer be profitable.