A look back at 2021 in Editor’s Comments

EDITOR’S COMMENT One of the biggest privileges of being the editor of EG is that every week you are given a page at very front of the magazine to talk about the big issues in the sector. It is a privilege alongside being a huge stressor. You get 600 words, week in, week out, to say something purposeful, to support the sector when it needs to be supported, to champion it when it needs championing and to challenge it when it needs challenging. You cannot mess it up. The opportunity to look like an idiot is all too easy. So here, to make it easy for you to make your own judgment as to whether these opportunities to write to you every week have been idiotic or alright, we share a year in real estate through the Editor’s Comment page. 9 January Need a new year pep talk? The words of more than 50 of the industry’s next leaders is the ultimate Deputy editor Tim Burke kicks off the year positively with messages of hope that things would eventually turn out OK. Not just from him, but from 50 of the industry’s next leaders. 16 January The sector has never needed a voice like this more than it does now, and the RICS appears to be losing its And so began the big discussions about what was going on at the RICS. A debate that ended up filling numerous pages in EG in 2021 and is set to do the same in 2022. 23 January Upton is going to have to make some hard decisions. Some of the very things that made U+I what it is are going to need to be pushed down the agenda in favour of financial performance And eventually Richard Upton did make a hard decision. As 2021 drew to a close, the business delisted and became part of Landsec. Whether that move was what was needed to make U+I great again remains to be seen. 30 January I don’t need to turn to BlackRock’s website to read words that bring about a feeling of hope. I have all that right here in the UK. I have all that right here in EG This was the issue where we gathered the new CEOs of five of the UK’s listed propcos to talk about what was driving them and their businesses in real estate. They were honest, open and, dare I say it, inspirational. 6 February If we’ve learnt anything from the past 10 months, it’s that leading is vital to survival We started to see a few more corporate victims of the pandemic and the discussion turned to best-in-class being the only way to weather the storm. 13 February If money talks, let’s make it help us pick up our pace on the journey to a more representative sector The real estate sector started to link its sustainability ambitions with its financing, forcing itself to meet vital objectives. We pondered whether the same needed to be done around the equality, diversity and inclusion agenda and asked if linking the cost of borrowing to diversity bring about rapid change? 20 February More than six weeks into the new year, everything is all a bit dull. And London is depressed The market was on pause and, quite frankly, it was really boring. There was no “mother of all quarters” in Q1. Luckily that changed as the year went on the and the investment and occupational (and M&A) markets got more and more busy. 27 February How can it be that in 2021, when we have all just been through one of the most torturous experiences, we still can’t be understanding and accepting of each other? The first of two surveys of the industry that revealed that we’d actually slipped backwards in our campaign to be a more welcoming and understanding sector. 6 March It is our job to take up the challenge and honour of being a role model, to own that title, and to seize the day. To seize every day, not just International Whatever Day The first of what I am not ashamed to admit is a few love letters to individuals in the market who deserve a bit of adoration. And a whole lot of listening to what they have to say. 13 March The future of real estate depends on digital intelligence. And the future of real estate depends on diverse intelligence. We all know how true this is EG launched its #REboot campaign this week for the sector to do its bit to help end digital poverty and reach into some of the poorest schools across the country. The sector stepped up and donated funds and more than 1,000 laptops to kids in need. 20 March This is not the time to be wedded to a trophy asset, or a strategy set out in a different age, or a measure of success defined by a predecessor Tim Burke is back. And so is Rita-Rose Gagné and her mission to turn around shopping centre REIT Hammerson. Like there is no crying in baseball, there should be no emotional attachment to an asset, she said. Paraphrased of course. She’s been true to her word with assets shed left, right and centre. 27 March Twelve months ago, I wrote here that this was not the end of the world. This was a crisis, but also an opportunity to learn. And we have A look back at how the Covid-19 pandemic had changed us, not ruined us. Clearly, not everything has worked out for real estate owners during the pandemic (those unpaid rents keep adding up), but as a sector it has taken a giant leap forward in its transformation. 10 April Let property owners fight if there is a battle to be waged. It is that which will bring our high streets back to life The never-ending moratorium was starting to get a little bit ridiculous by now and we asked the government to just let property owners and occupiers sort it out themselves, through negotiation or war. 17 April The whole situation has the makings of a Netflix sitcom – or a real estate version of The Thick of It The RICS provided more fodder as the first independent reviewer it appointed to lead the review into how its governing council was run following reports that four non-executive directors were ousted after questioning the internal handling of a critical financial report by BDO, quit. Rumours abounded that Peter Oldham QC, hired in February to undertake the review, had quit due to being overwhelmed with responses to his own review (later taken on by Alison Levitt QC) that should have been for a concurrent review (the RICS’s Defining our Future consultation). Everything was a mess. 24 April Real estate is quoted as being responsible for 40% of carbon emissions, but that figure is probably under-representative Publication of the magazine fell on Earth Day, providing an opportunity to talk about real estate’s role in solving the climate challenge. A theme that continues throughout the pages of EG and will continue to do so. 1 May The earth has shifted beneath real estate’s feet and those who fail to react will be left on the wrong side of history One of my favourite interviews of the year, with Fifth Wall’s Brendan Wallace. Wallace is 500mph and so, so passionate. And entirely unapologetic about calling real estate out. 8 May It is easy to look at this vacant space through a negative lens. But we need to see what isn’t there to envision what really is. EG had a little rebrand this week, with a cool new logo that uses negative space very cleverly. We totally did it on purpose, obviously, as a reflection of how the industry was repurposing vacant space for something better. 15 May Property owners fought back, and this week lost. That battle can’t be over – but what are we going to do about it? A bad week for property owners as the courts ruled in favour of a New Look CVA and dismissed arguments from a collection of landlords that the private equity-owned retailer was essentially rewriting legally binding lease agreements. 22 May While I secretly hoped for some messages of doom and gloom, there are some silver linings from a year in shutdown Bad news sells and we journalists love it. The first two sets of results for 2020 were delivered by the REITs and they weren’t pretty. There were big losses and record-breaking lows in revenues – the fortunes had reversed towards the end of 2021, before Omicron got us. 29 May Knowing that a root-and-branch review of the business is vital and change inevitable is something that every good leader should be prepared for  U+I’s Richard Upton was 100 days into his role at the helm of the business and was ready to admit that mistakes had been made. He was open and honest. And determined to make things great again. 5 June Summer will not be sitting back, sipping cocktails; it will be running to keep up with the flurry of activity that looks set to keep the market on its toes The market was back. A bit. After a quiet Q1, confidence was coming back and so was the spending. Investment figures were rising, BTR was booming, and everyone wanted to get in on a slice of the life sciences action. 12 June If you look at the figures, real estate hasn’t just shared the pain. It has shouldered it. And it has had very little support along the way The way the real estate industry was being overlooked as a victim of the pandemic really started to grate as it continued to be shouldered with the cost of Covid. 19 June While I’m saddened by the headlines of how business abuses talent, I’m encouraged by leaders across our sector working hard to create change The phrase “The Great Resignation” wasn’t quite being used in every conversation just yet, put the importance of nurturing talent was moving further and further up the agenda for many in the sector. 26 June A flexible approach to remote working is too often seen as anti-office. It isn’t. It’s a catalyst that can transform our workplaces for the better Tim Burke is back in the hot seat and the future of how we use office space continues to a key topic of debate. 3 July Real estate is a facilitator with the potential to change people’s lives. The why, rather than the what, has become so much more important Fresh from two days of poring through entries with the judges for EG Awards (which, if you came, were brilliant, weren’t they? So good to be back in a room together.) it was clear to see what people really wanted property to be celebrated for. Purpose was definitely not a dirty word. Profit, on its own at least, was starting to be seen as a little bit grubby. 10 July Like its entire approach to the real estate sector, government hasn’t taken the time to properly understand how the industry works I find politics and politicians very, very confusing. And was particularly baffled by the Treasury’s proposed approach to the “resi devi levy” – another tax on real estate that could potentially serve the purpose of pushing investment away from our towns and cities rather than levelling them up. 17 July Racism is rife. And it is getting worse. It is in every one of our businesses and we are enabling it It was just after “that” tweet. That horrible, painful, stupid and unacceptable tweet. It was the moment when we had to realise, that even if we think we are getting better, becoming more welcoming and inclusive, racism still exists. And it still exists in real estate. 24 July Walkley’s appointment is a move that does bring diversity into the business. Not in gender or in ethnicity, but in what is one of the most difficult forms of diversity – thought I thought I was going to look stupid with this leader. One week after saying how much harder we need to work to diversify real estate, here I was writing (another) love letter to Nick Walkley, a middle-aged (sorry Nick!) white guy. But, if you know Nick, you’ll know he definitely isn’t just another white guy. 31 July The business today is so alien from the firm born out of the wreckage of the great earthquake of 1906, but so too is the real estate industry The big green giant that is CBRE had just surprised the market with the acquisition of a 60% in project management specialist Turner & Townsend and it was a chance to take a peek at how the world’s biggest agent had transformed into something completely different. 7 August If real estate is increasingly forced to give away income and value, what does that mean for its ability to invest? The future of the office debate continued to rage on. But little was yet being said about what impact occupiers’ changing opinions about the office was having on income and investment levels. Rent frees started to go through the roof. 21 August The new vision needs to focus less on the big, shiny developments and more on proper town management and what Croydon’s people need It was the story we all knew was going to be told. That giant spaceship that had been proposed to land in Croydon, that joint development between Westfield and Hammerson, was finally shelved. None of us gasped. 4 September A comprehensive overhaul of how we run our businesses, how we recruit, how we reward and how we call out and punish bad behaviours is vital I usually love writing the leader, but I absolutely hated this one. Hated that I had to write it and hated that so much racism and unkindness still exists in this industry. Have we all just been talking the talk and not even attempting to walk the walk? 11 September Bumping into someone on the Croisette is MIPIM’s equivalent of the office water cooler moment. Those chance encounters have been scarce Better late than never. No, not Damian Wild returning to the leader page, but MIPIM. Wild joined a small but significant number of property professionals who revisited Cannes for a slightly different MIPIM. 18 September The RICS should be a force for good in the industry, not a farce Alison Levitt QC’s report into the RICS’s governance scandal was finally delivered and it was not good reading. Power and ego were running rife at the RICS and it was completely neglecting the needs of the industry. 25 September If we can’t inspire the next generation to join the sector, real estate’s battle to do better is lost A young graduate wrote to me about how they felt completely let down by the RICS and wondered how they could stand in front of their APC assessors and talk about honesty, integrity and how passionate they were about the sector. A kick up the proverbial for why we need to be doing more for the next generation if property is to prosper. 2 October It wasn’t the opportunities that Andy Street whizzed through that captured the room’s focus. It was his passion Confession time. I’ve always been more of an Andy Burnham fan than an Andy Street fan. Until I was sat with Andy Street at a dinner and saw how all that matters to him was the future of the West Midlands. His West Midlands. 9 October The traditional workplace – even if you aim to be there three days a week – underpins the appetite for office investment Office-based interactions were starting to happen again as Boris encouraged us to get back to our workplaces. But what would heading back to pre-Covid working patterns mean for our mental health and wellbeing? EG’s third Mental Health Survey found out and deputy editor Tim Burke suggested that it was all about the balance. 16 October There is power in vulnerability, in being human and showing your people, your business and the industry that you care It was the finale of EG’s second Future Female Leaders event and my oh my it was an emotional one. And an educational night, teaching us all how to make real estate the very best industry to be part of. Remind yourself of those lessons here. 23 October In an industry like real estate, there is a real fear that speaking out could jeopardise your future Emily Wright returned to EG (after a brief stint away on maternity leave) into the bigger role of head of content, leading our coverage of all the big topics – talent, ESG, tech and data and the evolution of our cites. Taking over the leader page, she introduces a new comment section, Unheard Voices, a tool to help real estate evolve as a more inclusive sector. 30 October I would never dare suggest that the industry gives up its battle, but perhaps a change of approach is required Budget day and again the industry went all out asking for a reform of the rates. Again they were sorely disappointed as chancellor Rishi Sunak, and I paraphrase here, said that it would be political suicide if he abolished a £25bn cash cow. Time for a new approach perhaps? 6 November Don’t tell us that we’re all screwed  I make no secret of the fact that I love the brand Patagonia and that I want it to sponsor me in some way so I can be dressed head to toe in its clothes every day and night. But, on this occasion, the firm was making a statement that worked so well for property. And it was all about perspective. 13 November It is time for that fear to disappear. The fear should entirely be with those unwilling to accept difference or change Honesty alert. I had quite low levels of faith in the sector when I wrote this leader. It could have been about the new Coronavirus Act, but instead I highlighted the two trans stories we were running in the magazine. I waited for push back. All I got was messages from the sector thanking Lee and Gaynor for sharing their stories. Well done real estate, well done. Faith restored. 20 November We need £1bn of investment to fix real estate’s contribution to the climate crisis. A billion quid shouldn’t be too hard to raise, right? I would never, ever, be facetious. Okay, maybe a little bit. And I definitely was in this editor’s comment, talking about the cost of real estate dealing with its embodied carbon issue. But, if my – and Landsec’s – maths are correct, then it really should be a problem that is solveable. This was also the week – just weeks before Omicron pushed us back – that it looked like everything was going to be OK. The REITs were back and so was activity. It felt good. For a while. 27 November Putting pound signs on social value is no walk in the park, but GPE has mapped out a route While I went for a walk in the park, Tim Burke encouraged the sector to take a leaf out of GPE’s new social value framework and work harder to deliver on the positives that we all know real estate can deliver. 4 December Understanding the wants and needs of talent has never been more important The Great Resignation is now in full swing, and we can only expect more people moves or, if we’re not careful, disappearances from the sector if we don’t work harder for our talent. Talent isn’t easily won with a big pay packet anymore; it wants a functional (for them) workplace and purpose too. 11 December This year has been about adapting. About taking everything we have learnt and being better, being more understanding, more inclusive Rounding off the year in print in only the very best fashion. With the words of EG Future Leaders, a collection of eight individuals from across the sector, delivering Ted-style talks on the future of the industry. A night that included discussions on the climate, nepotism, neurodiversity and the menopause. It was a night that reminded us that now is the time to adapt and that 2022 has to be a year of being better, braver, more understanding and more inclusive.   To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews