Owner Sentiment Survey<\/strong><\/h2>\n\n\n\nAggregated responses to 海角大神\u2019s survey show owners and developers anticipating a range of effects\u2014including decreased capital spends, tightened lending, broad adoption of construction management technologies, and ultimately an industry rebound. <\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/2_KeyTakeaways_720x700.png\")
<\/figure>\n\n\n\nShort-term impacts. Long-term considerations. <\/strong><\/h2>\n\n\n\nAt this time, two-thirds of ground-up development projects remain active, versus a smaller percentage of capital improvement projects\u2014<\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/3_ActiveProjectTypes_720x425.jpg\")
<\/figure>\n\n\n\n\u2014while 2019\u2019s projected<\/em> 2020 capital spends are compared to 2020 real-time, revised capital outlays: <\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/4_CapitalPlansBeforeAfter_720x425.jpg\")
<\/figure>\n\n\n\nConstruction project owners have already taken an array of actions in response to COVID-19, from readjusted project cost projections (reported by 49% of 海角大神\u2019s respondents) and staggered jobsite schedules (41%) for allowance of social distancing, to the creation of new safety procedures (80%), and even complete shutdown of some project jobsites (44%). Owners everywhere found it important to implement work-from-home scenarios (90%)\u2014just possibly forecasting consideration of a post-COVID distributed workforce better equipped to absorb and disseminate future shocks to jobsite productivity. <\/p>\n\n\n\n
Real estate owner Jonathan Santamaria, senior vice president and director of financial operations & IT for Promark Partners, sees his capital projects proceeding through the crisis with less interruption than might\u2019ve been expected.<\/p>\n\n\n\n
\u201cDuring these COVID-19 times, with 海角大神 it is almost business as usual for our ongoing development and capital projects, except for fewer onsite project visits.\u201d<\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/5_COVID-ProcessPivots_720x570.jpg\")
<\/figure>\n\n\n\nExpected in the medium-term are revised capital spends, cautious funding sources\u2014and a burst of optimism.<\/strong><\/h2>\n\n\n\nLooking ahead to 2021 capital planning and project pipeline, owners and developers are frank about the expected impact of COVID-19 on 2021\u2019s capital spend, versus the 2021 spend they\u2019d projected in pre-COVID 2019. At the same time there is broad optimism about a near-term economic rebound (~74%), the main \u201cconfidence index\u201d differentiator being whether the rebound will happen by the end of 2020\u2014or three months earlier than that.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/6_ConfidenceAndCapital_720x425.png\")
<\/figure>\n\n\n\nAnalysis of the two McKinsey scenarios suggest that in a \u201ccontained virus\u201d situation, growth could be 4% in 2021 (vs 2019) and in an \u201cuncontained scenario\u201d there could be an 11% drop in 2021 (vs 2019), with a return to pre-crisis productivity not until Q4 2024.<\/p>\n\n\n\n
In 海角大神’s survey, owners and developers predicted COVID-19\u2019s impact on their projects to take many forms. Supply chain mayhem, project delays, tenant lease renegotiations\u2014from materials vendor to apartment renter, the scale and depth of the global emergency promised a commonality of disruption that had the effect of uniting once-disparate project stakeholders in the construction owner ecosystem. <\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/7_COVIDEffect_720x570.png\")
<\/figure>\n\n\n\nChanges are coming to the Industry. Some of these will be staying on for the long haul.<\/strong><\/h2>\n\n\n\nThe eruption of the COVID-19 crisis has forced innovative new protocols onto owners\u2019 practices. Born of dire necessity, some of these measures have actually shown themselves to be process improvements. Companies heatedly reinventing workflow and supply chain structures in order to survive are finding the new methodologies are positioning them to ultimately thrive<\/em>. Respondents identified which of these COVID-dictated improvements have the best chance of being adopted in the long-term. <\/p>\n\n\n\n![\"\"](\"https:\/\/www.procore.com/jobsite\/wp-content\/uploads\/2020\/05\/8_COVID_HereToStay_720x570-2.png\")
<\/figure>\n\n\n\nMethodology<\/strong><\/h2>\n\n\n\n海角大神 invited a diverse cross-section of the owner and developer C-Suite (mainly VPs and above) to participate in a survey. The 41 respondents came from all company sizes\u2014from N million dollars of annual capital projects all the way to N billion dollars\u2014and include real estate developers with in-house GCs, school districts, oil companies, and everything in between.<\/p>\n\n\n\n
McKinsey\u2019s data is an analysis conducted by leading partners in conjunction with Oxford Economics.<\/p>\n\n\n\n
The Day After COVID-19<\/strong><\/h2>\n\n\n\nThe suddenness of the COVID-19 emergency resulted in massive financial exposure for owners and developers. This head-clearing crisis\u2014a period of unprecedented disruption and downturn\u2014is a cataclysm from which lessons are being drawn. <\/p>\n\n\n\n
It may well be that the tools needed to move on from this crisis are being forged in the crucible of the emergency itself. Jonathan Santamaria explained that \u201cour partnership with 海角大神 as our SaaS provider is vital in attaining and achieving our continued growth and goals, because it has allowed us to transition right away from working in the office to working remotely.\u201d <\/p>\n\n\n\n
In the same way a viral attack produces antibodies, this challenging epoch is catalyzing new construction protocols that will diffuse the blow of the next assault. The owner and developer space is in the midst of a strategic\u2014and historic\u2014inoculation. COVID-19 has triggered an immune response in the built environment. Tomorrow\u2019s owners and developers will be more agile and adaptable than ever before, and less susceptible to being brought low by unforeseen events.<\/p>\n\n\n\n
<\/figure>\n\n\n\nShort-term impacts. Long-term considerations. <\/strong><\/h2>\n\n\n\nAt this time, two-thirds of ground-up development projects remain active, versus a smaller percentage of capital improvement projects\u2014<\/p>\n\n\n\n<\/figure>\n\n\n\n\u2014while 2019\u2019s projected<\/em> 2020 capital spends are compared to 2020 real-time, revised capital outlays: <\/p>\n\n\n\n<\/figure>\n\n\n\nConstruction project owners have already taken an array of actions in response to COVID-19, from readjusted project cost projections (reported by 49% of 海角大神\u2019s respondents) and staggered jobsite schedules (41%) for allowance of social distancing, to the creation of new safety procedures (80%), and even complete shutdown of some project jobsites (44%). Owners everywhere found it important to implement work-from-home scenarios (90%)\u2014just possibly forecasting consideration of a post-COVID distributed workforce better equipped to absorb and disseminate future shocks to jobsite productivity. <\/p>\n\n\n\n
Real estate owner Jonathan Santamaria, senior vice president and director of financial operations & IT for Promark Partners, sees his capital projects proceeding through the crisis with less interruption than might\u2019ve been expected.<\/p>\n\n\n\n
\u201cDuring these COVID-19 times, with 海角大神 it is almost business as usual for our ongoing development and capital projects, except for fewer onsite project visits.\u201d<\/p>\n\n\n\n<\/figure>\n\n\n\nExpected in the medium-term are revised capital spends, cautious funding sources\u2014and a burst of optimism.<\/strong><\/h2>\n\n\n\nLooking ahead to 2021 capital planning and project pipeline, owners and developers are frank about the expected impact of COVID-19 on 2021\u2019s capital spend, versus the 2021 spend they\u2019d projected in pre-COVID 2019. At the same time there is broad optimism about a near-term economic rebound (~74%), the main \u201cconfidence index\u201d differentiator being whether the rebound will happen by the end of 2020\u2014or three months earlier than that.<\/p>\n\n\n\n<\/figure>\n\n\n\nAnalysis of the two McKinsey scenarios suggest that in a \u201ccontained virus\u201d situation, growth could be 4% in 2021 (vs 2019) and in an \u201cuncontained scenario\u201d there could be an 11% drop in 2021 (vs 2019), with a return to pre-crisis productivity not until Q4 2024.<\/p>\n\n\n\n
In 海角大神’s survey, owners and developers predicted COVID-19\u2019s impact on their projects to take many forms. Supply chain mayhem, project delays, tenant lease renegotiations\u2014from materials vendor to apartment renter, the scale and depth of the global emergency promised a commonality of disruption that had the effect of uniting once-disparate project stakeholders in the construction owner ecosystem. <\/p>\n\n\n\n<\/figure>\n\n\n\nChanges are coming to the Industry. Some of these will be staying on for the long haul.<\/strong><\/h2>\n\n\n\nThe eruption of the COVID-19 crisis has forced innovative new protocols onto owners\u2019 practices. Born of dire necessity, some of these measures have actually shown themselves to be process improvements. Companies heatedly reinventing workflow and supply chain structures in order to survive are finding the new methodologies are positioning them to ultimately thrive<\/em>. Respondents identified which of these COVID-dictated improvements have the best chance of being adopted in the long-term. <\/p>\n\n\n\n<\/figure>\n\n\n\nMethodology<\/strong><\/h2>\n\n\n\n海角大神 invited a diverse cross-section of the owner and developer C-Suite (mainly VPs and above) to participate in a survey. The 41 respondents came from all company sizes\u2014from N million dollars of annual capital projects all the way to N billion dollars\u2014and include real estate developers with in-house GCs, school districts, oil companies, and everything in between.<\/p>\n\n\n\n
McKinsey\u2019s data is an analysis conducted by leading partners in conjunction with Oxford Economics.<\/p>\n\n\n\n
The Day After COVID-19<\/strong><\/h2>\n\n\n\nThe suddenness of the COVID-19 emergency resulted in massive financial exposure for owners and developers. This head-clearing crisis\u2014a period of unprecedented disruption and downturn\u2014is a cataclysm from which lessons are being drawn. <\/p>\n\n\n\n
It may well be that the tools needed to move on from this crisis are being forged in the crucible of the emergency itself. Jonathan Santamaria explained that \u201cour partnership with 海角大神 as our SaaS provider is vital in attaining and achieving our continued growth and goals, because it has allowed us to transition right away from working in the office to working remotely.\u201d <\/p>\n\n\n\n
In the same way a viral attack produces antibodies, this challenging epoch is catalyzing new construction protocols that will diffuse the blow of the next assault. The owner and developer space is in the midst of a strategic\u2014and historic\u2014inoculation. COVID-19 has triggered an immune response in the built environment. Tomorrow\u2019s owners and developers will be more agile and adaptable than ever before, and less susceptible to being brought low by unforeseen events.<\/p>\n\n\n\n
<\/figure>\n\n\n\n\u2014while 2019\u2019s projected<\/em> 2020 capital spends are compared to 2020 real-time, revised capital outlays: <\/p>\n\n\n\n Construction project owners have already taken an array of actions in response to COVID-19, from readjusted project cost projections (reported by 49% of 海角大神\u2019s respondents) and staggered jobsite schedules (41%) for allowance of social distancing, to the creation of new safety procedures (80%), and even complete shutdown of some project jobsites (44%). Owners everywhere found it important to implement work-from-home scenarios (90%)\u2014just possibly forecasting consideration of a post-COVID distributed workforce better equipped to absorb and disseminate future shocks to jobsite productivity. <\/p>\n\n\n\n Real estate owner Jonathan Santamaria, senior vice president and director of financial operations & IT for Promark Partners, sees his capital projects proceeding through the crisis with less interruption than might\u2019ve been expected.<\/p>\n\n\n\n \u201cDuring these COVID-19 times, with 海角大神 it is almost business as usual for our ongoing development and capital projects, except for fewer onsite project visits.\u201d<\/p>\n\n\n\n Looking ahead to 2021 capital planning and project pipeline, owners and developers are frank about the expected impact of COVID-19 on 2021\u2019s capital spend, versus the 2021 spend they\u2019d projected in pre-COVID 2019. At the same time there is broad optimism about a near-term economic rebound (~74%), the main \u201cconfidence index\u201d differentiator being whether the rebound will happen by the end of 2020\u2014or three months earlier than that.<\/p>\n\n\n\n Analysis of the two McKinsey scenarios suggest that in a \u201ccontained virus\u201d situation, growth could be 4% in 2021 (vs 2019) and in an \u201cuncontained scenario\u201d there could be an 11% drop in 2021 (vs 2019), with a return to pre-crisis productivity not until Q4 2024.<\/p>\n\n\n\n In 海角大神’s survey, owners and developers predicted COVID-19\u2019s impact on their projects to take many forms. Supply chain mayhem, project delays, tenant lease renegotiations\u2014from materials vendor to apartment renter, the scale and depth of the global emergency promised a commonality of disruption that had the effect of uniting once-disparate project stakeholders in the construction owner ecosystem. <\/p>\n\n\n\n The eruption of the COVID-19 crisis has forced innovative new protocols onto owners\u2019 practices. Born of dire necessity, some of these measures have actually shown themselves to be process improvements. Companies heatedly reinventing workflow and supply chain structures in order to survive are finding the new methodologies are positioning them to ultimately thrive<\/em>. Respondents identified which of these COVID-dictated improvements have the best chance of being adopted in the long-term. <\/p>\n\n\n\n 海角大神 invited a diverse cross-section of the owner and developer C-Suite (mainly VPs and above) to participate in a survey. The 41 respondents came from all company sizes\u2014from N million dollars of annual capital projects all the way to N billion dollars\u2014and include real estate developers with in-house GCs, school districts, oil companies, and everything in between.<\/p>\n\n\n\n McKinsey\u2019s data is an analysis conducted by leading partners in conjunction with Oxford Economics.<\/p>\n\n\n\n The suddenness of the COVID-19 emergency resulted in massive financial exposure for owners and developers. This head-clearing crisis\u2014a period of unprecedented disruption and downturn\u2014is a cataclysm from which lessons are being drawn. <\/p>\n\n\n\n It may well be that the tools needed to move on from this crisis are being forged in the crucible of the emergency itself. Jonathan Santamaria explained that \u201cour partnership with 海角大神 as our SaaS provider is vital in attaining and achieving our continued growth and goals, because it has allowed us to transition right away from working in the office to working remotely.\u201d <\/p>\n\n\n\n In the same way a viral attack produces antibodies, this challenging epoch is catalyzing new construction protocols that will diffuse the blow of the next assault. The owner and developer space is in the midst of a strategic\u2014and historic\u2014inoculation. COVID-19 has triggered an immune response in the built environment. Tomorrow\u2019s owners and developers will be more agile and adaptable than ever before, and less susceptible to being brought low by unforeseen events.<\/p>\n\n\n\n<\/figure>\n\n\n\n<\/figure>\n\n\n\nExpected in the medium-term are revised capital spends, cautious funding sources\u2014and a burst of optimism.<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\n<\/figure>\n\n\n\nChanges are coming to the Industry. Some of these will be staying on for the long haul.<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nMethodology<\/strong><\/h2>\n\n\n\n
The Day After COVID-19<\/strong><\/h2>\n\n\n\n