A PROGRAM FOR ASSET ENHANCEMENT

We believe that with newer buildings coming into the postpandemic market, there would be a surge in rental rates that would reverberate into a transitional shift in value. Data by JLL has shown that five sectors, namely offices, retail, industrial, hotels and residential are likely to produce high returns through asset enhancements.

Offices:

Workplaces should be reconfigured to facilitate and accommodate new approaches to working and provide a safe, healthy, stimulating and flexible space to attract and retain talent and support collaboration and innovation.

Retail:

Shopping malls must be swift to respond to the rise of e-commerce. It is essential that we increase asset sustainability and redefine patron experience with the inclusion of new atrium spaces, landscaping, rejuvenation of the interior and exterior mall, and switch up the tenant mix to align with changing shoppers’ preferences and behaviors. With the enhanced tenant mix such as F&B and experiential retail features, it would result in a wider range of opportunities for engaging consumers.

Hotels:

Hotels often follows a country’s economic peaks and troughs. Aged hotels can be converted and repurposed to a coliving space or developed into serviced apartments. On the other hand, some hotels are taking into account the ever-evolving tech-savvy market, hence adopting proptech for improved customer experiences and operational efficiencies.

Industrial:

Warehousing and logistics are evolving to cater to the demands of higher value industrial uses, by increasing the level of robotics, automation, and sustainability targets. Advancement of facilities for manufacturing, product, and software development such as initiatives to install solar panels would generate additional income stream while enabling tenants to enjoy energy cost savings. We predict a significant impact on the bricks-and-mortar element of the logistics sector when the deployment of electric vehicles and drones becomes mainstream.

Residential:

Development of alternative living solutions including co-living spaces, senior living facilities, student-housing space and mixed used developments would encourage people of the community to get together and bond alongside one another while incorporating a sustainable lifestyle collectively.