Sea to Sky Management(SKS) recently published its prospects and strategies for 2022. They also reviewed covid impacts on the real estate industry.
COVID Impacts
Despite Forbes having reported a 53% drop in housing supply in 2020 due to supply chain issues and operational issues, it’s still hard to show the full impact of COVID-19 on the commercial real estate market. As telecommuting became the norm overnight, rental income fell sharply as companies cut costs by working from home or opting for smaller workspaces as hybrid offices. Ironically, the outbreak does not seem to have affected the housing market. Demand for multifamily properties is still high and rents have returned to peak levels. While the housing market remains competitive, reducing supply and rising manufacturing costs to ensure supply meets demand is crucial for the residential real estate market to stay positive.
Even though the commercial real estate market is expected to struggle to adapt to the growing demand for working remotely, the result still remains uncertain since it may take another fiscal year or even longer to accurately assess the impact of COVID-19 on it.
Industry Solutions
The economy rebounded faster than expected in all sectors, including housing. Real estate and property management trends suggest that while the industry has adapted to the pandemic, some aspects may be changed permanently.
A significant change in high-level property management agencies is the centralization of cash management, which is the complete opposite of the usual practice of decentralization. Keeping cash management centralized enables real estate investors to identify efficiency issues and adopt a more streamlined mindset toward their spending. Real estate professionals are attempting to balance preserving existing portfolios and strengthening their competitive assets to create a win-win for their business such as increasing the number of employees and consumer loyalty.
“The best way to ensure your productivity is to plan the future ahead. Entrepreneurs always focus on the result. And that in real estate, stands for rethinking established standards,” says Zhu, “as the demand for working from home grows, will large-scale commercial office space still be profitable? The increasing customer demand for more sustainable and environmentally friendly housing will be the primary concern for the real estate market.”
To boost productivity and entrepreneurship in real estate development is to embrace digital development. Customer experience will become more critical than ever as the industry becomes more competitive following the real estate boom. “SKS is diversifying its revenue streams, prioritizing tenant experiences, and pursuing digital strategies to stand out from the competition. The pandemic has increased the need for a shift in strategy,” Zhu added.
New Trends
With Slovenia declaring an end to the pandemic, 2022 could be the first “post-blue” year of the housing market. Real estate remains a competitive asset, rebounding from unimaginable conditions and optimistic for 2022. Niche real estate sectors – data centers and cold storage, are attracting more investment as they become the mainstream. The resilience of the property market that is combined with low-interest rates and foreign investment, means competition in multi-family and industrial niches would remain intense.
“Virtual reality and augmented reality are essential. Using virtual technology can help homebuyers visit their future homes without leaving their current homes. Another data management system that helps keep up with the latest trends is that by synchronizing data internally, cloud storage solutions have also become a sophisticated part of ensuring productivity, simplifying daily tasks, and managing projects. Real estate companies are trying to assuage investor concerns by working with partners.” Zhu said.
“A good property management company has to use an effective data management system as well as a long-standing reputation, licenses, and experience to deal with properties in various categories,” Zhu added.
About SKS
Sea to Sky Management (SKS) is a real estate investment and management company. Its modern Management system has changed the traditional service model and brought residents a more convenient service experience. SKS’s services packages include familiarizing the property and identifying its weaknesses and any problems that might arise. SKS runs under the rule of keeping costs and maximizing profit margins by managing investment assets. SKS is committed to accurately assessing its customers and minimizing risk to achieve “good predictable returns” regardless of whether they choose a less risky investment with a lower rate of return or a better rate of return with more uncertainty to reduce uncertainty for investors. SKS operates primarily in commercial and residential properties and provides convenient life experiences for different groups in the right places to help owners benefit from its expertise and data management skills.
