2021’s Key Learnings
If 2020 was the year of adaptability, as we very rapidly pivoted in response to a global pandemic, the hallmark of 2021 is surely resilience (and perhaps no coincidence this is the Chinese ‘Year of the Ox’), as we wasted little time in working out how to live, work and enjoy our leisure time in a ‘new normal’. At P-THREE we’re mindful of the wise adage that sometimes you have to look back to move forward. In that mindset, we’ve been reviewing the wide array of topics covered in our Perspectives this year and have distilled these down into what we believe are some of the core themes which have framed 2021 and, perhaps more importantly, will be influential across our marketplace in 2022 and beyond.
Perhaps the most seismic shift of the year has been the growing realisation that the way we work has changed for good.
For restaurant operators and the wider leisure sector the year has definitely been one of swings and roundabouts. While weaker players found the first half of the year challenging (and some found they could no longer trade), the easing of Covid restrictions unleashed a tsunami of pent up consumer demand as many of us revelled in the ability able to meet in person once more. This, however, brought its own problems, as many businesses found staffing issues and capacity problems were now impacting on their ability to trade. Those able to think creatively and move quickly have undoubtedly fared best this year.
Our collective rush back to meeting in person has led to massive growth in competitive socialising. All kinds of venues, from axe throwing to mini golf, have proved popular. In our view the concept isn’t simply a fad, but will undoubtedly endure and the savviest operators are those located close to offices. Working from home might have become common enough, but workplace events are likely to be concentrated on a single geographic point: around the office itself. Active leisure was one of the key subsectors we tipped for growth earlier in the year.
For a year that started in lockdown, with shoppers largely forced to make retail purchases from home, it’s in some ways remarkable that preliminary data shows that there has been a high level of shopping centre transactions over the past 12 months, both in the total number of sales and the volume of sales. We see this as recognition that former shopping centres are now being viewed for the redevelopment and repurposing opportunities they genuinely are, as developers look to create new amazing spaces.
While the transition away from city and town centre dependency on department stores had already started some time before the pandemic, what we’ve seen over the last year has been the evolution of former department store space. We have no doubt that some department stores, particularly those in the upper end of the market, will thrive, the space formerly occupied by mid-range stores is being creatively reimagined, often still as retail space, but in a much more localised and community-led way.
As 2021 drew to a close, the United Nations’ COP26 climate change summit reminded us that net zero, and indeed other environmental issues, are not simply slogans, but will require us, individually and corporately, to carefully examine our behaviours going forward. In the arena of the built environment, we will be increasingly asking ourselves questions that we haven’t had to ask in the past, such as should we reuse instead of redevelop and how can we make our fit-outs fit in with the new generation circular economy we are all likely to progressively subscribe to.
One of the high points for the retail/leisure sector in 2021 was the opening of a brand new shopping district. (It was a personal highlight for P-THREE, too, as (full disclosure) were involved with the project.) We believe Nuveen’s St James Quarter in Edinburgh is a tangible representation of how true mixed use redevelopment can enhance, revitalise and add value to our town and city centres.
Perhaps the most seismic shift of the year has been the growing realisation that the way we work has changed for good. As we’ve previously made clear, this doesn’t mean that offices are redundant; but it does mean that the way they are used will change and that in turn will have an effect on their surrounding environment. We are particularly keen that offices avoid the pitfalls that appeared before the retail sector when it faced a similar crisis several years ago. We suggest that a little retail knowledge can go a long way to benefit offices, and the town/city centres that house them.
Don’t miss our predictions for 2022, which we’ll be unveiling here on January 4th. In the meantime, all at P-THREE wish you a very merry and safe festive period.
Article by the P-THREE team
