COMMERCIAL REAL ESTATE HEALTH CHECKS

The Covid-19 pandemic is changing the commercial real estate market from what it was pre-COVID to what we are experiencing now - global lockdown and business travel restrictions, business closures, social distancing, pressure on business cash flows and eventual market uncertainty and volatility in the global economy and financial markets.

Despite vaccines rollouts and global vaccination, the market uncertainty and volatility have created different outlooks for the real estate asset classes and types; causing an unprecedented dislocation in the commercial real estate operational performance and market fundamentals.

Whilst some have recorded a positive outlook in their income growth, revenue collections, total property returns, and risks management; others are struggling with recovery and have remained less capitalised through the crisis.

The resilience and decision to recover quickly depend on growth and recovery strategies adopted by owners, investors, fund managers to remain well capitalised and stay robust throughout and after the pandemic. One of the strategies adopted is constant and regular health (operational and market fundamentals) check, with a view to stay informed in taking immediate action and plan for the future.

There are many questions surrounding the CRE markets at this time as the pandemic unfolds new level of market uncertainty and volatility, and some of them are on:

1. Operational Performance

2. Return Optimization

3. Growth Strategy

4. Investment in Workforce, Industry Contribution and Recognition

5. Risk Consideration.

With the hope of getting the economy back on track - through global vaccination, stimulus packages, and innovative ideas - investors and professionals in the real estate sector are advised to regularly assess the health status of their portfiolio, in order to better prepare for the post-pandemic future.

If you have questions about CRE and or interested in knowing more of CRE assessing metrics in this uncertain time, please talk to us at aabraham@akaa-ng.com and +2348068774629.