These are the Booming Assets Post Pandemic
At TOTE SER we have been looking on the bright side of things ever since we started our activity - over 30 years ago. We believe there is always a silver lining that outweighs the cons of a certain conjecture, and the pandemic has been no exception. Upon an imminent crisis and the overall uncertainty of investment, we cannot help but unleash our inner pathfinder sense and be successful amid the difficulties and hardships that the world is facing right now.
This is, in this way, our diary. We look to document our experience and what our in investors are doing. Today we bring you the most aspiring and strategic asset types to invest post pandemic, considering the changes in lifestyle and future trends that are sure to revolutionize the market as we know it.
First of all, let us ask you a question. Amid the current conjecture and the undeniable necessity of stay more and more time at home, what would you say were the main ways of shopping from families all around the world? If you answered online shopping, you're right. It is with no surprise the sector that benefited the most due to its nature of providing your goods right at your doorstep. Online shopping over the last month has become way more than acquiring leisure and entertainment goods through the likes of Amazon and Ebay. The pandemic has resulted into an unprecedented leverage to start other businesses such as ordering food straight from hypermarkets, restaurants, small grocery shops and Deli's. It has become such a big thing that you can know order single items from a simple App such as Ubereats, Postmates or Glovo. And not only that, the perceived quality of service has achieved unanimous opinions regarding safety, speed and quality - more and more people are open to these new ways of shopping and it'll be a matter of time before this makes up for 60/70% of market sales.
Photograph by Ruchindra Gunasekara in Unsplash
The point here is, with the evolution of online shopping and the never-ending necessity of providing goods to households across the entire world, where will companies store their products? Not at their HQ, and most certainly not in their retail stores. They will need very large logistic assets, counting on enormous warehouses that can store the most amounts of goods in the most strategic place they can find. That's right, logistic assets have always been a constant growing asset type, but now, more than ever, companies are adapting their portfolio strategy to include more logistic assets. These assets in particular have certain requirements that dictate their value, practicality and functionality: the first one is pretty self-explanatory, warehouses need to count on easy access to both north and south of the country, and also to other countries; the practicality also goes hand in hand with location, meaning elevation and easy access to the cargo trucks are a must; the functionality lies in the quality of the warehouse and how the management is done (regarding parking, speed of service, deliveries and parcel pick-ups, etc.). Our investors have unashamedly admitted that their search for assets in conciliated logistic parks such as Azambuja here in Portugal is in full swing, and they even added that there is some hurry to it. The race for the warehouses has begun and scoring strategic assets at appealing prices is certainly what they are aiming for. TOTE SER, despite specializing in residential and office assets, has already began promoting and helping investors scoring their most desired logistic assets in the most prime locations of Portugal.
Photograph by Hannes Egler in Unsplash
We have seen that online shopping amounts for an ever-growing increase of market sales. To make online purchases, it is necessary to send them to your address. There is no direct relationship between eCommerce and residential properties; however there is an increasing need for more and more highly sophisticated houses, prepared to support new technologies and cutting edge services. Housing in the middle of 2020 requires advanced technological and interactive components, and this trend was further levered by the pandemic. In addition, the change from the traditional work style to working at home and the need to transform our homes into much more versatile spaces are two very strong contributors to this dynamism of our home concept.
Residential investment now has an increased concern for these details that are increasingly valued, and the data check. ver the course of the last 3 months, JLL Real Estate has stated that they've had an increase of 23% in searches for houses with rooftops/terraces. In summary, logistics and residential assets have a very favorable forecast, an emerging opportunity from a very delicate situation.
The strategic investment in these types of assets thus assumes the important of a very efficient market positioning.