DARE to adapt in a fast-changing world

 

The “Phase-One” trade agreement signed by the U.S. and China earlier this month will provide a welcome boost for the global economy in 2020. Although geopolitical tension is expected to continue to weigh on business activity, there remain significant opportunities for real estate occupiers and investors as they navigate a prolonged but volatile economic growth cycle.

 

•             Capital Markets: Investors should adopt more realistic return targets and strengthen portfolio resilience by focusing on structural and defensive plays.

 

•             Office: Occupiers should remain agile; conduct more thorough assessments of market and environmental risks; and consider a broader range of markets, locations and property types.

 

•             Retail: Landlords and retailers are advised to upgrade their shopping experience and physical spaces by introducing more entertainment and experience-based elements.

 

•             Logistics: The industry must create more efficient distribution systems to accommodate e-commerce related parcel growth and rising costs. Automation will be key.