In the years 2020 and 2021, the real estate industry has gained a deep understanding of the term New Normal. Based on analysis from the author's experiences and opinions, I would like to present the impacts of the New Normal on various types of real estate in Thailand (please note that these are personal opinions and should not be used as references). This includes how different types of real estate can adapt to survive through the COVID-19 crisis.

1. Office Buildings The COVID-19 pandemic has forced a portion of the working population to work from home. Office buildings that companies rent may need to rethink their leasing strategies and space planning, as many employees are working from home and cannot fully utilize the rented space. With advancements in internet communication and the increased use of various work and meeting programs, the necessity of working together in an office may decrease. Companies may reduce their need for office space and adopt the concept of Satellite Offices (where employees work from home or other locations instead of a large office). Large offices may only retain executive rooms and meeting spaces for client interactions.

If you are involved in the office building sector, consider targeting government agencies or state enterprises that require continuous client interaction, such as the Revenue Department, Excise Department, or even the Passport Office at the Ministry of Foreign Affairs, as primary tenants. This could mitigate the impacts of the New Normal. If you are planning to develop an office building, it is advisable to engage potential tenants 3-4 years before construction begins to ensure that there are tenants to negotiate with by the time the building opens. After securing primary tenants, you might design or convert part of the space into retail areas or support facilities for the main tenants, such as photocopy shops, restaurants, or coffee shops nearby.

The impact of COVID-19 also extends to co-working spaces, which may see a decline in popularity as many tasks can be performed from home, and the public increasingly practices social distancing. I predict that co-working spaces will gradually disappear from the real estate market within the next five years, and traditional office buildings will enter this market more, such as converting vacant office spaces on lower floors into 24-hour co-working spaces.

2. Retail Spaces The New Normal, which emphasizes social and physical distancing, has led consumers to shift towards online shopping. Retail spaces, including cinemas and gas stations with convenience stores, have all been affected, except for fresh food and restaurant businesses, which still have some operational space. Other consumer goods are increasingly purchased online or through various omnichannel platforms. Retail stores will likely reduce their roles to mere showrooms and decrease inventory, meaning the need for retail space rentals will diminish, impacting retail operators and shopping centers.

How can retail operators adapt? They might increase the number of food businesses, both branded and unbranded, and expand restaurant spaces. Supermarkets may also expand their areas or transform retail spaces into experience spaces that offer more than just products, such as relaxation areas or partnerships with art galleries, exhibition spaces, or museums. Some areas may even be converted into collaborative workspaces.

3. Hospitality Industry The COVID-19 pandemic has severely impacted the tourism industry due to the closure of countries like China, South Korea, and European nations, which are major sources of tourists to Thailand. With no tourists, hotels and accommodations have faced significant challenges as they still incur expenses such as employee salaries and maintenance costs. This sector may have to wait until global fears of the virus subside, which could take another 1-2 years (until a vaccine for COVID-19 is available) before tourists feel safe enough to travel. Based on my estimates, international travel may begin to resume around early 2022.

How can hotel operators adapt? If they have sufficient funds, they could use this time for renovations or consider renting out accommodations to locals on a monthly basis. They might even convert their facilities into hospitels to accommodate individuals returning from abroad or from other provinces (following the standards set by the Ministry of Public Health or the COVID-19 Situation Administration Center).

4. Event Spaces, Theaters, and Entertainment Venues The New Normal and social distancing have affected people's desire to go out and socialize. Many activities can now be conducted through other channels, such as watching movies online instead of in theaters, or holding conferences online, regardless of their formality or scale.

How can operators adapt? Similar to hotel operators, if you have sufficient space, you might consider leasing it to the government or hospitals to set up field hospitals temporarily, then renovate the space later when conditions improve.

5. The Impact on the MICE Industry (Meetings, Incentives, Conventions, and Exhibitions) is another major sector affected, employing a large workforce. The MICE industry combines hospitality and conference properties. Before the COVID-19 outbreak, Thailand was a significant destination for international tourists and business travelers, generating over 200 billion baht in revenue (TCEB, 2019). However, with the resurgence of COVID-19 in Thailand, the MICE industry and related real estate have been severely impacted.

How can MICE operators adapt? I recommend viewing your business and properties as smaller components and addressing issues one at a time. Additionally, reach out to relevant agencies like the THAILAND CONVENTION & EXHIBITION BUREAU (PUBLIC ORGANIZATION) or TCEB to learn about support policies for operators.

6. Residential Condominium Properties Since these are homes for many people, once built and sold, it becomes the responsibility of the condominium management to find ways to prevent the spread of COVID-19 within the building. They could partner with nearby hospitals to rent out unsold units as temporary accommodations for medical staff, which would also instill confidence in other residents. Other corrective actions could include cleaning common areas every two hours, disinfecting, and providing hand sanitizer stations.

If the project is still in the planning phase, designers may need to reconsider their designs to include more open spaces, higher ceilings for better airflow, or improved ventilation systems in hallways. They might also design common areas to receive more sunlight.

I would like to conclude my analysis here, as I believe many operators already have strategies to adapt and have survived numerous crises before. However, this is a global crisis, and the real estate sector may need to think more critically and look further into the future.

Finally, the Department of Innovation in Real Estate Development (MIRED) and TERRABKK send our best wishes to all real estate operators to overcome the challenges posed by COVID-19 together.