Click here for the hard truth about the current job marketAugust 31, 2015 8:50
Field of dreams
A forecast of six real estate trends in Saudi Arabia for 2011 reminds Kipp of a Kevin Costner where unknown forces urged him to build a baseball field that will attract other-worldly players.
March 28, 2011 4:38 by Precious de Leon
Critically, the infrastructure investment will have a direct impact on real estate through a nation-wide rebalancing by integrating outlying cities and creating new hubs of value, job growth that will augment demand, and generally supporting the growth of all real estate sectors, especially industrial.
4. Property Management will differentiate the winners from the losers
Long term capital values will be directly determined by the quality of property and facility management. With many sectors experiencing a significant increase in supply, the new high value assets will require a higher quality property management to maximise revenues, manage costs, and minimise depreciation.
Injections of new supply will tip some markets in favour of tenants, which will require leasing strategies and frameworks that ensure occupancy. This trend will be led by large multinational tenants that prefer to lease space managed by professional property management firms. Within facility management, a component of property management, opportunities will emerge to reposition non-performing office and retail assets and, more generally, industry stakeholders will focus on the importance to lifecycle services.
The delivery of world-class assets will shift the focus from development to operation and to the protection of the long term value of investment. Due to the nature of the supply pipeline, this trend will first emerge in the office and retail sectors in the short term and in the residential sector in the long term.