Retail Asset Services Optimisation White Paper

Once operational efficiencies are in place, focus can then turn to higher value strategies. Over the past several years, real estate assets have generated steady cash flow and returns. This reality has changed and real estate players have been hit across the value chain through reduced operating income and a more clouded operating environment for buildings and tenants alike. While some of the impacts are temporary, others are expected to be more permanent, transforming the future of certain asset classes. Across almost every asset class, potential longer-term effects must be considered as well as the required changes that these shifts are likely to bring. This means assessment and reassessment of “risk”. A deeper understanding of existing assets and portfolios is therefore required through the analysis of upside and downside scenarios to identify assets with most operational risks and how to best position them for the changing operating environment. Business plans and capital expenditure then need to be adjusted accordingly to ensure they incorporate the relevant value add propositions. As part of this, owners of real estate need to act more flexibly by delivering an active management solution with a focus on customer experience, sustainability and wellbeing. This requires a change in mindset, from a focus on “service” to a focus on “experience”, which is built on each building’s strengths and then curating events that cater to the tenant and customer base. In turn, this creates an environment where customers want to go and are loathe to leave; driving occupier satisfaction and enhanced commercial opportunities.

Accordingly, data and analytic insights are fundamental to making strategic decisions regarding commercial lease negotiations, asset valuation and improved tenant experience and operations. Technology and digital solutions will be among critical enablers to usher in the new era of real estate, allowing not only the customisation of spaces according to meet changing needs, but also taking building management to the next level and addressing sustainability and affordability. Fundamentally, the future of asset optimisation is founded

RETAIL ASSET OPTIMISATION FOR TOMORROW

CUSHMAN & WAKEFIELD

upon landlords and asset managers creating a more

transparent and collaborative relationship between owner and occupier to respond to global market trends.

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