Our clients’ common needs are to enhance value and reduce risk. Enhancing value is achieved through applied data insights, delivery efficiency, improved asset occupancy and performance, accelerated decarbonization, increased asset attractiveness, as well as maximized and resilient returns. Financial and reputational risks are inherent in delivery of capital, operational budgets, delivery of major works programmes, asset depreciation from climate change impact, sustainability and regulatory non-conformance, and evolving customer needs.
Property and Investment sector clients are constantly being impacted by global trends.
Digitalization is a mega trend that is impacting the sector. There is a huge demand for e-commerce trade, resulting in a need for logistics and data center assets. This demand has exponentially grown during the current pandemic. Another trend is population growth, which has led to shortage in the property market. This is reflected in the need for example rental accommodation, private care homes and dedicated student accommodation facilities. These trends and asset cycles are predicted and acted on by our banks, investors, retailers and developers.
Sustainability and the need for decarbonization is impacting tenant and customer needs and decisions, as well as cost of debt finance for investors. It can have an effect on asset value and can ultimately impact whether investors buy into funds, banks or developers. In many countries, it can also play a role in determining the legal status of an asset in terms of regulatory compliance, and they provide a societal license to operate.
Interest rates drive banks’ investment strategy. Higher rates give banks better ability to invest in CAPEX programs for new ventures. Lower rates drive cost efficiency and asset optimization. Lower rates enable developers and investors to leverage the lower cost of debt to finance or refinance, projects and investments.
Due to the above trends, many clients are in a continual state of flux. Our account leaders continually listen and probe in order to fully understand client business needs. We use the feedback to create a solution tailored to deliver the desired client business outcomes. Being global, we can do this consistently around the world using our core strategic pillars of scalable delivery solutions and digitalization.