Covid-19 has forced business leaders to reimagine how they operate. Steve Kemler, Managing Partner of the Stone Arch Group, real estate investor, and long- time New Yorker, says that while every industry has been disrupted in some form or fashion, nowhere has the pandemic’s disruption been felt more intensely than in New York City real estate.
New York was the early epicenter of the virus within the United States. This fact has had tremendous impacts on the city’s real estate sector. New York’s lockdown – among the toughest and longest-lasting in the country – meant that in-person showings and closing were prohibited. Construction stopped altogether. Landlords were forced to negotiate with tenants who were unable (or simply refused) to pay rent en masse. Property managers suddenly faced the task of preventing the virus from spreading within their buildings. Owners of office buildings watched as their skyscrapers emptied out completely, with no clear timeline on when tenants’ employees might return.
These challenges have forced the industry to adapt in innovative ways. Apartment showings went virtual, utilizing 360-degree camera technology and rendering software to enable potential tenants to explore a space remotely. Building operators installed new air purification systems, plexiglass barriers, and hand sanitizer stations.
Some of the real estate sector’s recent innovations have been even more creative. Modern Spaces, the brokerage team working with Skyline Tower (a 67 story, 802-unit condominium complex in the heart of Long Island City), developed a social media campaign tailored to the current moment. Every time a potential occupant tags the building’s account on social media, the building’s owner makes a donation to Covid-19 relief organizations. The campaign has enhanced the project’s visibility while also benefiting the wider community and increasing awareness of Covid-19 relief efforts.
Until life in New York returns to some semblance of normalcy, the real estate sector will be reliant on innovations like these to survive. So far, the industry has demonstrated that it is up to the challenge.
