COMMENT Perhaps inevitably, this year’s MIPIM was all about diversity. So much so that this week’s event might mark a turning point in how the industry thinks and acts. But perhaps not in the way in which you might think.
True, there was a focus on gender. The London Festival of Architecture’s elephant campaign against discrimination resonated. And action followed talk with unusual speed – on the London stand 40% of speakers were female. There will be welcome change in how the industry behaves; there already is.
But more than anything, focus centred on diversity of thought and the near-universal acceptance that thinking must change fast.
Leaders of big agents acknowledged that they were spending more and more time discussing, in the words of one, “what could kill us”.
Might it be blockchain or WeWork which render intermediaries redundant? Those who confront that most fundamental of questions will be best equipped to deal with its consequences.
Hiring new skills
Meanwhile, some of the very largest developers talked of overhauling their processes and their need to hire in new skills. Again it’s WeWork – an organisation which has perhaps done most to disrupt conventional real estate wisdom – which offers both threat and inspiration.
Some, like British Land, are developing similar branded products of their own. Others, such as Landsec and the Crown Estate, are focusing on how they use their space differently.
They, and others, are focusing on common areas and cafés, and recognise that some lettable space will have to be sacrificed to satisfy tenants who want more of a serviced office experience within their own office.
Others are going further. Tishman Speyer’s Zo focuses on wellness. A developer thinking about the provision of yoga classes could not be further away from a standard institutional lease.
So, headhunters are not being tasked with finding surveyors; it’s those with proven skills and experience in hospitality and customer services who are in highest demand.
All this requires agility and speed, not attributes always associated with real estate. But some get it.
Contractors that can take time out of the build process by using modular, component and prefabricated techniques are favoured.
Those who can supply and interpret data to speed up lettings are being listened to.
And for public and private sector organisations alike, those who can work collaboratively are more likely to thrive than those who choose not to.
Challenges
Of course there are challenges too. Politics has never been harder to read. Local elections in May look certain to return a number of inner London boroughs with changed priorities and heightened suspicion of this sector. That won’t help.
Brexit is barely a year away. Those of us who would prefer it not to be the case simply have to get over it.
And in between could we see a general election and the return of a Labour government? The former is possible, the latter likely if it were to happen.
Balancing the short and the long term, being willing to look beyond accepted, historic wisdom and not ducking difficult questions are vital.
And it requires diversity – of colleagues, of networks, and especially of thought.
To send feedback, e-mail damian.wild@egi.co.uk or tweet @DamianWild or @estatesgazette
