Originally Posted by Bass Reeves
Clothes etc tend to be more browse and spend, white goods tend to be more focused on value and Amazon is more electronic and small good's
Part of the attraction of clothes online is the ability with established shops to return free if charge to the local store. Therefore you can order 3-4 items of different sizes or similar types and drop back the ones you do not want. These shops live with the return costs With complete online shopping return costs are a factor that have to be allowed for by the consumer.
WFH will require more living space. A young couple if both are working from home will no longer be happy with a one bed apartment with a single dining/living space. Dermot Bannon's open plan designs will be a thing of the past. If you are on the phone to a customer or manager, your partner/flatmate having a chat and going through the gory details with a workmate on the phone about the last night out will be an issue.
More space equals more costs. The high flying legal eagle may be happy to work from home 1-2 days a week but he still want his office when he goes in. No hotdesking for him
All good points. But even if there's only a 10% permanent drop in the daily footfall, that impacts the value of all properties in the city, office, retail etc.
More importantly, for my perspective anyway, the banks and pension funds seem to have significant funds invested in this space and I'm just concerned for my pension, as I don't see suburban properties making up the shortfall.
Even if suburban properties increased in value, the pension funds probably don't have the equity in their existing city centre property portfolios to gear up and invest in them. Instead of investing in more property, they're more likely to be taking losses in the near future as they will probably need to offload their prime properties to meet redemption requests etc.
If all pension funds are in a similar situation and the banks are not in a position to lend, who will take them? Maybe the so-called vulture funds, but I read that many of them are already looking to get out of this space. Even if they did enter, the pension funds and banks will most likely take a significant hit either way.
For example, back in January, Aviva stopped investors from taking money out of their Irish property funds with a "combined value of €940 million", and that was pre-covid: