Dror’s Substack | Substack

For a growing number of retail, office, lodging, and industrial customers, access is no longer about a single location but about being able to move freely within a network of spaces.

A building’s visibility is no longer restricted to the offline world. The way an asset looks online has a growing impact on its value. This is particularly true for assets that offer instant bookings such as hotels, shared apartments, and short-term meeting rooms.

Zoning is losing its power. New ventures are able to reach a meaningful scale before regulators (and competitors) react. The boundaries between different uses are blurring, with people lodging in apartment buildings, living in hotels, working in restaurants and retail malls, and sleeping or socializing at the office.

As their operational intensity increases, the financial performance of office, multifamily, and industrial assets might become more correlated with other businesses in the overall economy. The performance of hotel properties, for example, is already more correlated with the overall stock market. A growing correlation with other asset classes will a... See more

A building’s location is becoming less important and insufficient to define and defend its value. Humans can work remotely and many choose to do so, at least some of the time.