Smart Strategies for Resilient Real Estate: Insights from Industry Leaders

The resilience of real estate portfolios is a crucial concept for investors seeking to minimize risks and maximize long-term returns. “In an often uncertain economic context, the ability of a real estate portfolio to withstand shocks and recover quickly is essential,” emphasized Anna Duchnowska. “Resilience in real estate refers to a portfolio’s ability to absorb economic disruptions, such as recessions, interest rate fluctuations, or health crises like the COVID-19 pandemic, while maintaining its value and income. A resilient portfolio is diversified, well-managed, and relies on quality assets.”

One of the key factors for the resilience of a real estate portfolio is diversification. “A diversified portfolio,” notes Victor Stoltenburg, “reduces risk by spreading investments across different types of properties (residential, commercial, industrial) and in different geographical regions. This allows for potential losses in one sector to be compensated by gains in another. However, it is equally important to focus on the quality of the assets. Investing in high-quality properties located in strategic locations with strong rental demand is crucial. These assets tend to withstand market fluctuations better.”

“This also means,” added Alex Jeffrey, “that proactive management is essential. This includes regular maintenance of properties, optimizing leases, and managing tenant relationships. All of this is vital to maintain asset value and rental income. At the same time, it is important to continuously analyze risks. We have seen recently that risks are manifold. There are, of course, risks related to the general economic situation, but also environmental and regulatory risks. A good risk analysis allows for anticipating potential problems and implementing mitigation strategies. During economic crises, properties used for essential services, such as supermarkets, healthcare centers, and logistics warehouses, have shown significant resilience.”

“The adoption of innovative technologies for property management and improving energy efficiency can enhance resilience by reducing operational costs and attracting environmentally-conscious tenants,” Anna Duchnowska added. “The resilience of real estate portfolios thus relies on a combination of diversification, asset quality, proactive management, and risk analysis. By adopting these strategies, investors can better protect their investments against market volatility and ensure stable long-term returns. When owners and investors conduct energy audits, implement measures to enhance energy efficiency, adopt renewable energy sources, and monitor and optimize energy use—either independently or through well-chosen partners—it is evident that banks will follow and support them.”

The three participants also explicitly stated that offices continue to be an integral part of resilient portfolios. “It is well known that companies like Amazon and Zoom have decided to bring their employees back to the office”(Amazon tells staff to get back to office five days a week). A new survey by recruitment specialist Robert Half, coinciding with the launch of its annual Salary Guide, showed that more than 70% of employers tend to promote employees who are physically present in the office more quickly than their colleagues who work from home. But this is certainly not the only argument in favor of a return to the office. Anna Duchnowska pointed out that several studies show that productivity and efficiency results from remote work are not as good as those from in-person work. Victor Stoltenburg reiterated that offices will continue to occupy a vital place in investors’ portfolios, provided they are designed modernly: among other things, with quiet areas, plenty of "coffee" spaces, and comfortable seating that create a truly friendly atmosphere.