Six Must Reads for the CRE Industry Today
There are more signs that even after the pandemic that corporations will be opting for a blended work model. A survey from Fortune found that only four percent of CEOs are looking to add office space. Meanwhile, LVMH is moving to bring Tiffany staff back to its office for a minimum of two days per week starting in March, according to the Wall Street Journal. These are among today’s must reads from around the commercial real estate industry.
- Work-from-home isn’t going away: Only 4% of CEOs plan to add office space “Once the vaccine is fully rolled out, we'll find out what the future of remote work is. To get a sense of where we're headed, Fortune conducted a survey of CEOs in collaboration with Deloitte. We received over 100 responses from executives between January 5 and 13. We asked CEOs similar questions in our September 2020 survey—so we can see if CEOs are changing their minds.” (Fortune)
- LVMH Tells Tiffany Staff to Return to Office Two Days a Week “Tiffany will join a small list of large New York companies that have required employees to return to the office, including JPMorgan Chase & Co. In Houston, Shell Oil Co. and some other energy companies brought back workers as early as May or June, only to send them home again amid coronavirus outbreaks. A spokesman for Tiffany had no immediate comment.” (The Wall Street Journal)
- Troubled Commercial Mortgage Loan Triage: A Special Servicer Roundtable “With the ebb and flow of 2020 market disruption in the rearview mirror and the vaccine rollout in full swing, MBA NewsLink checked in with a special servicer, a rating agency servicer analyst and Freddie Mac asset management chief to explore what is happening in commercial/multifamily markets, where different parts of the commercial real estate finance ecosystem are today and factors driving the outlook for agency and non-agency CMBS sectors.” (MBA NewsLink)
- Retail real estate industry optimistic about recovery: ICSC survey “Tom McGee, CEO of the International Council of Shopping Centers (ICSC), joins Yahoo Finance Live to discuss the findings of a recent survey, which reveal that retail and commercial real estate (CRE) leaders expect pandemic-induced changes to propel the industry forward, and foot traffic to return to pre-COVID levels.” (Yahoo! Finance)
- How the Hybrid Store Format Will Transform Retail “Technology will play a major role in the transformation of traditional stores. Checkout lines will be completely eliminated, Cordero predicts. At the same time, humans will still be needed on the sales floor, dedicated to customer-facing roles, while a separate workforce will be responsible for handling order fulfillment in the back of the store.” (SupplyChainBrain)
- 2020 Prologis Logistics Rent Index: Resilience Tested “Despite a mid-year dip due to the pandemic, global rent growth improved through year-end 2020 and ended with a 2.9% full-year increase. In North America, outperformance in demand resulted in healthy rent growth. In Europe, recovery materialized as the market likewise benefited from growing secular trends and limited supply.” (Prologis)