Adjusting to the new “normal”
As we’ve been adjusting to the new “normal,” we’ve been keeping a pulse on our network’s concerns.
Listening to our clients, partners, and contacts over the past few weeks has opened our eyes to the challenges that many professionals from across the CRE landscape are facing. Without an existing playbook to guide us, continuing with business as usual can seem unsettling and, at times, overwhelming.
Many of us turn to data to substantiate the decisions we choose to make, and Reonomy is in a unique position to facilitate the exchange of information and to guide us through these uncertain times.
What the data says
In light of current events, we shifted our focus to data-backed thought leadership that leverages our vast dataset and property intelligence.
Reonomy Research provides accessible, macro-level insights on commercial real estate trends, allowing you to keep a pulse on market trends.
Though the full impact of COVID-19’s impact on property markets remains unknown, key takeaways from early research conducted by our Market Analyst, Omar Eltorai indicate:
- While the magnitude of COVID-19’s economic impact is still speculative, the directional impact is undoubtedly negative. Estimating the impact of COVID-19 on private commercial property markets is a two-part challenge that requires estimating the near-term impact from the virus and virus-related containment efforts, and then estimating the longer-term impact from any economic fallout that follows.
- Supply chain disruptions, travel bans, and social distancing pose threats to owner-occupiers and tenants of commercial property. While a pause in dealmaking and potential temporary credit freeze pose a threat to financing and future dealflow. Recent declines in public valuations suggest that private valuations will also take a hit.
- Over the next year, COVID-19 will lead to a 7% decline (19% in severe scenario) in the number of transactions and a 16% decline (32% in severe scenario) in total dollar volume transacted, when compared with 2019 numbers. The COVID-19 impact will push commercial property transaction activity back to levels not seen since 2015 for transaction count and 2012 for transaction volume. These estimates suggest that COVID-19 will cost the commercial property market 25 thousand transactions and $100 billion in deal volume.
How we’re positioned to help
Reonomy’s mission is to make property intelligence accessible for everyone, from the individual investor to the world’s largest enterprises. We steadfastly stand behind this mission now more than ever to ensure that we provide relevant data and insights for our clients, partners, and contacts.
At our core is proprietary technology that synchronizes information from across a multitude of sources into a single, reliable platform. While our New York HQ may be closed for the foreseeable future, our Product, Engineering, and Data Science functions are continuing to bring to market new features, along with improvements to our data pipeline and product functionality.
These updates, being carried out by our team working remotely from Australia, California, Singapore, Virginia, Connecticut, Florida, Texas, and beyond, are geared towards saving you time and empowering you with the most up-to-date intelligence available.
On the topic of availability, we recognize that users may experience issues with latency on a county-by-county basis due to business closures. At this time, we are closely monitoring disruptions of data fed by public sources and guarantee that the most up-to-date information on record has been incorporated into our platform and will continue to be updated as the offices re-open.
Actions we’re taking for our team
We take the health and well-being of the Reonomy team very seriously, so as of March 11, our team has transitioned fully to remote work. To facilitate this transition and remain connected as an organization, we leverage internal communication tools such as Zoom and Slack to keep our team updated on the latest developments.
And to make sure our team experiences a sense of consistency, we have extended our in-office experience to the home as much as possible. The communal meal has always been an integral part of Reonomy’s culture. Back when we were working in-office, meals were sourced daily from local businesses across New York City, which allowed Reonomists to congregate, share ideas, and enjoy each other’s company.
We recognize how important local businesses– particularly restaurants, are to the fabric of our work culture and would like to ensure their livelihood beyond this crisis. So during this period of change, Reonomy employees are offered a daily stipend to put towards food and are encouraged to use at local businesses.
We have also continued to offer opportunities to join together (remotely!) over virtual lunch-and-learns and company happy hours, which encourage a similar opportunity to our in-office experience.
Working with our community
In addition to the stipend, we have committed a sizable donation to the NYC COVID-19 Emergency Relief Fund, offering support to our community of local businesses, healthcare workers, and vulnerable New Yorkers.
We are grateful to have the infrastructure in place to continue building exciting new enhancements to our products and to support our customers as we all navigate through these difficult times.
We are continuously monitoring and following recommendations from the WHO, CDC, and local authorities and adapting our plans accordingly. As the COVID-19 crisis unfolds, we will be in transparent communication with our clients, partners, and contacts to share any changes.
In the meantime, we have prepared a digest below that will be regularly updated with resources to better assist you in adjusting to the new “normal.”