During the period of quarantine measures, many processes in the economy
just stopped. However, the experience of China and the opinion of the
majority of experts concentrate on the fact that there would be no
fundamental shifts in the real estate markets, and after a short-term shock,
the situation will begin to stabilize steadily.
Retail real estate is one of the most vulnerable to the effects of COVID-19,
as it experiences the downtime of retail space. However, after the end of
quarantine, prolonged isolation encourages society to communicate more,
as well as to strive to visit public places. By that time, unrealized demand
for a number of goods and services will accumulate, and therefore, interest
in the shopping and entertainment center as a format of leisure will not
At the same time, panic, reduced income and savings will make consumers
more economical and picky, which may affect the turnover and traffic of
shopping centers. Retailers are forced to revise development plans and
optimize their existing presence in shopping malls. It is also required to
intensify competition, which has already strengthened due to the
introduction of modern shopping malls and growth of consumer
expectations. Most likely, up-to-date properties would not experience
fundamental changes in traffic and occupancy after the quarantine, but
most retail projects will have to fight to restore pre-crisis indicators.
Therefore, already today, owners and developers should offer the market
an anti-crisis program, update the concept, maximize the competitive
advantages of the facility or create new ones to win tomorrow in the fight
for the consumer. This is the only way to achieve or maintain occupancy
and maintain the commercial viability of the project.
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