[INSIGHTS]: McKinsey Report – Empty Spaces and hybrid places

An interesting report from McKinsey looking at the continuing impact from the pandemic on remote, hybrid working and real estate footprints: link

Summary

This McKinsey report explores the impact of the pandemic on the real estate industry, including the rise of remote work and hybrid spaces. The report provides insights and recommendations for companies and policy leaders to navigate the changing landscape of real estate.

Key Points

  • The pandemic has accelerated pre-existing trends in the real estate industry, such as the rise of e-commerce and remote work.
  • The shift to remote work has led to a decrease in demand for office space, particularly in urban areas.
  • The rise of e-commerce has led to an increase in demand for industrial and logistics real estate.
  • The pandemic has highlighted the importance of health and wellness in real estate, with a focus on air quality and outdoor spaces.
  • The report recommends that companies and policy leaders focus on flexibility and adaptability in real estate, including the use of hybrid spaces and the repurposing of empty spaces.

Key Statistics

  • According to the report, the vacancy rate for office space in the US increased from 16.8% in Q1 2020 to 17.1% in Q1 2021.
  • The report notes that e-commerce sales in the US increased by 32.4% in 2020, compared to 14.9% in 2019.

Key Take Aways

  • Real estate companies and policy leaders should focus on flexibility and adaptability in response to the changing landscape of real estate.
  • The rise of remote work and e-commerce will continue to impact the demand for different types of real estate.
  • Health and wellness will become increasingly important in real estate, with a focus on air quality and outdoor spaces.
  • The repurposing of empty spaces, such as vacant office buildings, can provide opportunities for new types of real estate.
  • The use of hybrid spaces, which combine different types of real estate, can provide flexibility and cost savings for companies.
  • The pandemic has highlighted the importance of technology in real estate, particularly in the areas of remote work and e-commerce.
  • The report recommends that companies and policy leaders focus on sustainability in real estate, including the use of green buildings and renewable energy.
  • The shift to remote work has led to a decrease in demand for office space, particularly in urban areas.
  • The rise of e-commerce has led to an increase in demand for industrial and logistics real estate.
  • Real estate companies and policy leaders should consider the impact of changing consumer behavior on the demand for different types of real estate.
  • The report recommends that companies and policy leaders focus on creating value for tenants and customers, including the use of technology and data analytics.
  • The pandemic has highlighted the importance of resilience in real estate, with a focus on risk management and contingency planning.
  • The report notes that the pandemic has created opportunities for real estate companies to innovate and adapt to changing market conditions.
  • The report recommends that companies and policy leaders focus on collaboration and partnerships to drive innovation and create value in real estate.
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