Real Estate Recovery Looks PromisingBy Lorenzo Núñez | Mon, 07/26/2021 - 16:10
Q: What new opportunities emerged as a result of the pandemic?
A: The pandemic had an impact on all industries. The real estate business experienced some difficult times as well. Nevertheless, during a crisis, it is best to learn and adapt. We have had to implement new practices and modify our old ones, as well as pushing more innovations to attract more investment. We did not expect prices to drop, which allowed us to make better decisions. The pandemic allowed us to further differentiate ourselves from our competition. We were able to be a lot more flexible with our renters and provide new and improved experiences to our clients. We also made changes to our operations so that when we go back to normal, we will be one step ahead. When the pandemic began, we recognized the necessity of changing certain plans right from the get-go. For instance, proper air circulation is crucial. As a result, we changed some projects that are under construction to include terraces.
Q: What long-term changes will disruption in work and living spaces bring to the office segment?
A: I do not believe the future is solely home office. It will be a hybrid modality for working. The cramped workplace will be a thing of the past. We will start to see an increase in recreational and open areas, as stationary workplaces start to decline. This will revolutionize the workplace. The space will still be needed but how it is used will be modified.
Q: What are Parks’ plans and how have they evolved as a result of the office disruption?
A: We quickly recognized that the market was changing. We took our data and discussed it with experts and industry leaders. Soon after, we began redistributing the workspace and redesigning existing projects. What we offer now is the gray work, conditioned spaces, as well as already furnished offices, which are optimized. The final product we offer are mixed use, where we specifically adapt the workplace to our clients’ needs.
Q: How long will it take for prices in the office market to stabilize?
A: It has always been a cycle. We saw some recovery in prices in 1Q21. We are starting to see numbers go up, which is a sign of better things to come. We believe that the industry will close the year on a positive note and that 2022 will bring much needed stability.
Q: In terms of recovery expectations, how do different markets compare and where are you setting your priorities?
A: I believe that commercial real estate will be the first to recover, due to its simplicity in terms of attracting investment. Office real estate will have a slower recovery but we remain optimistic that next year will bring better times. As a company, we remain diversified, which gives us an advantage in uncertain times.
The tourism industry is also presenting a good rate of recovery, especially the beach destinations. The business side of tourism is slowly recovering. We believe that by the end of the year, tourism numbers will reach 2019 levels.
The retail industry has evolved over time and recent technologies have allowed companies to sell their products through online platforms. This has allowed us to adapt to the changes resulting from the pandemic. It all has to do with flexibility.
Q: How are the big federal infrastructure projects, such as the Mayan Train, projected to impact Parks’ projects?
A: We believe that the Mayan Train is a solid project that will be able to distribute the visiting population more rapidly and more efficiently on the peninsula, which will be a boost for the tourism industry. We have properties that are located close to the train stations and that represents medium-term opportunities for us.
Q: What does the e-commerce and industrial real estate boom mean for Parks and its investors?
A: It means opportunities to innovate. It requires us to be quick in changing the way we operate and stay ahead of the competition. It also means that we need to be more flexible with our tenants, with the objective of increasing their profits from online sales as well as their physical sales, all through improved logistic strategies.
Parks Desarrolladora provides real estate development, construction, marketing and operations in the commercial, industrial, corporate, residential, hospitality and mixed-use segments.