Restaurants, hotels and shopping malls have been closed as a result of the prevailing epidemic and subsequent restrictions. The commercial real estate industry faced a huge challenge. Is there a recipe to survive this crisis?
Coronavirus-related restrictions have already affected almost all commercial properties. Malls and hotels have been forced to close their doors to visitors, and restaurants are now only working by serving take-out food. However, this does not mean that the industry has frozen. Some investments started before the pandemic broke out have not been interrupted, and thanks to remote work, it is possible for architects to operate remotely. Here's how those involved in the commercial real estate sector see the situation.
hope in local tourism
Architect Magdalena Federowicz-Boule, president of the Tremend studio, which specializes in public buildings, addressed the current situation.
Our team was prepared to work from home, we were able to adapt to this mode quite quickly, although of course we lack direct contact. We use video conferencing and work in the cloud on shared files, so we can still work on joint projects - and we have a lot of them lately. Our investors haven't given up on their plans, so we're continuing the activities we started before the outbreak. As for the future of the hospitality industry, which is particularly close to us, we are confident that it will change. Restricting the ability to cross borders, however, does not preclude domestic tourism. Traveling and exploring new places is a primal need for all people, and I think it will continue to be realized.
eye of the expert
Alex Kloszewski, Managing Partner of Hotel Professionals & Hotel Professionals Management Group - the first consulting firm dedicated to the hospitality industry in Poland - shared his insights.
The commercial real estate business is a connected vessel. Only the indicators for the first quarter of 2020 will tell us how much of an impact COVID-19has on the industry. The worst is the situation of shopping centers, overnight their tenants have lost turnover and rents have come under pressure. Large mixed-use complexes are considering closing all functions for several weeks or even months to cut costs. The hotel industry already lost revenue in the first two weeks of March, and the subsequent weeks of cancellations have shown that without support to maintain liquidity, it will not be able to survive this crisis. Hotels are trying to fight together to get the state to support the industry, but each development is a different story and separately tries to find a solution by working with business partners. The exhibition industry has also set up a crisis staff. More than half of the companies associated with it already say they are laying off employees.
Novotel Poznań Centrum, design: Tremend.
photo: Yassen Hristov
Inevitably, new standards will also be introduced - to ensure that everyone feels safe. How might this proceed?
Everything will change! Hotels will have to find a way to assure their guests and customers about the ongoing disinfection of the facilities, that each hotel will have a sanitation certificate before checking in the next guest. This will become a standard. I think masks and gloves will be issued free of charge to guests at the front desk. Kitchen work and all staff will be sanitized, and the appropriate certificates will be available for review. Waiters and bartenders will wear masks, gloves, etc. - adds the expert.
Will the need for contact win out?
Commercial real estate in recent years has taken on the role of meeting places, fostering integration. It is this aspect that will allow them to survive the crisis, predicts Jaroslaw Gwóźdź, vice president of Tremend.
Work is taking place not only at the design stage. Construction has not been halted either. We are still working, but with special precautions. Our investors are making sure that there is no shortage of masks, gloves and disinfectants. I think we will all have to adapt to the situation - because it may take some time, and after all, life must go on. Perhaps more regulations will be introduced to regulate our work. And from a purely human perspective - I think we already crave contact, we miss the usual shopping in the mall or visits to restaurants. I think the industry will nevertheless survive this crisis, although it will certainly change," he explains.
Ibis Styles Lublin Stare Miasto, proj.: Tremend
© Tremend press materials
It is difficult to predict how long the crisis will last and to what extent it will affect the economy. Regression seems inevitable, but mutual solidarity, exchange of experience and adaptation to change may somewhat mitigate the epidemic. It is possible that commercial real estate will undergo a significant metamorphosis in the near future to meet the demands of the new reality. In what direction will they evolve? We will probably find out the answer to this question in the coming months.
elaborated. editors Illustrations courtesy of Tremend
