REIT ASIAPAC MAGAZINE REITASIAPAC AUGUST 2020 ISSUE | Page 16

REIT ASIAPAC
some respondents commented that it is also important for
them not to disregard the business aspect of maintaining
long-term returns. Ensuring a successful partnership can be
delicate balance.
“It should be a partnership. While REITs can provide support
for the short term, there are also operational costs that REITs
have to shoulder,” said one Singapore-based investor. It’s a
delicate balance and hence tenants and landlord must take
this time to have a hard look at the relationship and forge a
partnership going forward,” he said.
“Landlords know that if their tenants fail, it would be difficult
to source replacement tenants during this period,” said a
separate investor.
Landlords should have had a choice of who they wanted to
support, rather than be obliged to do so,” said one investor.
Therefore, rebates should be provided “where relevant, if it
means a good tenant is retained.”
Another respondent from Hong Kong agreed, “Go for quality
and sustainability with keeping ESG in mind.”
10. REAL ESTATE USE
WILL EVOLVE
Q
Following Covid-19, what is your view of the
future of real estate? Do we really need physical
office space or malls?
The commercial property sector has never faced such a level
of uncertainty. While the global pandemic is not expected to
erase the use of commercial real estate, the volume of space
required for office, retail, and hospitality will likely decrease.
Many economic activities all over the world were forced
to move online as businesses learned how to cope with
the restrictions brought about by the coronavirus disease.
Office work has largely turned to telemarketing, with video
conference programs like Zoom and Skype allowing for
meetings and collaborations in real time. The retail sector
has also turned to “online malls” and e-commerce platforms
so patrons can shop from the comfort of their own homes.
Business travel has taken a big plunge, and is unlikely to
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