Dear reader of this fresh issue of Restate Newsletter.
It’s been a long time since our last newsletter. Now we are back and will reach You on a quarterly basis with Restate news of property, but also overviews from the world, about the people around us and perhaps a little glimpse at the crystal ball every once in a while.
Clearly, we won’t be forecasting and all forward-looking predictions shall be opinions only.
We do promise, however, to rely on the best estimates of our professional team.
The first half of 2020 has been rather colorful for the entire world. After a pretty successful start of the property year, the unexpected outbreak of the virus rewrote the reality in just over a few weeks. Bold predictions of growth had to be revised and we still can’t say with any certainty who’s eventually going to recover or perish as the new economic crisis unfolds.
Never before have the changes in the economy reached the real estate industry so rapidly. Only a few weeks after the Covid-19 broke the news the whole world stopped. Without any prior notice, everybody had to stay home, including the property people. For our sector, it was unheard of. We realized the necessity of turning the industry that has been traditionally reactive and long cycled into something modern, proactive, and flexible. That’s the biggest puzzle for us to solve in the coming years.
One thing is clear though, long spoken digitalization will be of utmost importance in the property business. Winners shall adapt. Creativity gets the entire new meaning.
The most notorious keyword, that we get to take with us is „Social Distancing“. How to guarantee the safety and appropriate usage of our buildings when the cue of 10 persons spans 20 meters, minimum work desk aisle is 200 cm and 50 of every 100 seats in restaurants are „reserved for corona“. Yes, it’s not new normal, but the world demography allows us to predict that such occasions are not getting any rarer.
But hey! Let’s be positive! It’s the First issue!
Our e-commerce has just lived through explosional growth. Nearly bankrupted spirit factories have been revived by producing disinfectant and frozen warehouses are overbooked. Notarised agreements can be signed from the comfort of your couch and thousands of parents have become education specialists overnight.
What do we in Restate follow with the excitement?
Global trends always have reached Estonia with a delay of at least a couple of years. That should give as upper hand in being ready to welcome them:
1. Workspace psychology. Comfort vs function.
2. Managing new Logistics. E-commerce compatible spaces.
3. Hotelification and Contact free services in sharing economy.
4. Robots and AI. Computer led warehouses and client personnel without a physical body.
5. Big data and location services. Giving up privacy and voluntary submission to surveillance.
6. Self Driving transport. Adapting to loose of the control.
7. The disappearance of Retail. Entertainment bullies shopping.
8. 5D planning and virtual houses. Will the efficiency kill esthetics?!
If we get boring, You let us know - we are too big of a fan of Real Estate to notice!
With The Warmest regards!
Ardi Roosimaa, partner, Restate.