The Deloitte US Center for Financial Services recently released its 2021 CRE Outlook after surveying industry leaders on how their companies are recovering from the COVID-19 pandemic. Here are some of the key messages:
- The impact of COVID-19 on the global economy and on the CRE industry specifically continues to be a challenge for leaders.
- The digital transformation of the business and tenant experience is essential. More than half the respondents (56%) believe the pandemic exposed shortcomings in their companies’ digital capabilities.
- Since the pandemic is disrupting the value proposition of CRE – especially for offices, retail and hotels – most CRE firms are reevaluating their existing portfolios.
- Survey respondents are feeling the financial impact of the current economy – 36% said they expect rent collection declines of over 20% in 2021.
- Since employees remain reluctant to return to the office, over half of respondents said their ability to succeed in 2021 will be hampered. Implementing policies to help employees adapt to the future of work, and prioritizing diversity and inclusion will help provide a competitive edge.
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