Nineteen Motley Real Estate Ideas in Times of COVID-19 – Part IV – Properties for Medical and Educational Ends

By Peter Fassl & Helmut Seitz, HSP Rechtsanwälte GmbH

Unfortunately, the pandemic has kept us in a chokehold for much longer than any of us would have expected roughly a year and a half ago. In this column, we are deliberately trying to give a few random thoughts on how to react to a situation in difficult times at short notice, while at the same time making sure that all adjustments add value to the real estate asset class in the future. This time, we want to give some thoughts on the topics of medicine and education.

In Vienna, numerous large and small test centres were built shortly after the outbreak of the pandemic last year. From the perspective of a real estate investor, three simple models can be derived from this:

1. Office And Test Containers

For the simple placement of office and test containers, all that is really needed is an asphalt surface and good accessibility. Such a location could be any larger parking lot (at a shopping mall, for instance). It is possible this way to make a nice additional income without a large investment.

2. Pop-Up-Stores

The same applies to the concept of “pop-up stores”. Before the pandemic, vacant retail spaces were often used by short-term tenants, e.g., for flea markets, special sales, or comparable events. During the pandemic in Vienna, for example, small test sites were run as “pop-ups” in former bank branches. Although everyone hopes there will be no need for test or vaccination sites in the future, it is necessary to keep the flexibility to adapt to new market situations.

3. Real Estate For Secondary Education

A disruptive change will most likely occur in real estate for secondary education. Children and teenagers under the age of 15 will probably continue to be taught in classic school buildings in the future; not only because of the educational aspect, but also because children need to be supervised while their parents are at work. However, there will probably be a change for 15 to 19-year-olds, in the medium term. In 10 years, the requirements for educational institutions for over 19-year-olds will probably be significantly different from the typical campus we think of today. In particular, where students do not need to learn physical skills, like in a lab, traditional seminar rooms and large lecture halls will disappear. Most of this will be taught through distance learning. In addition to data line capacities, which will become even more significant in the future, a sustainable teaching location will need numerous well-organised rooms for distant and hybrid communication. Therefore, a real estate investor will also need take a close look at space and IT technology concepts.

We hope to have provided some food for thought. Feel free to send us your Motley ideas.


Peter Fassl

Peter Fassl

GGI member firm
HSP Rechtsanwälte GmbH
Law Firm Services
Vienna, Austria
T: +43 1 533 0533
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W: hsp.law
Helmut Seitz

Helmut Seitz

GGI member firm
HSP Rechtsanwälte GmbH
Law Firm Services
Vienna, Austria
T: +43 1 533 0533
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: hsp.law


Published: GGI Insider, No. 113, May 2021 l Photo: Halfpoint - stock.adobe.com

 

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