Haxted Thinking No. 01 / September 2020

 
Haxted Thinking is a new monthly newsletter for anyone interested in how buildings are designed, made and used.

What is: Haxted Thinking?

Hello, I’m Carlo Navato, the founder of Haxted. In Haxted Thinking I’ll cover things from the whole end-to-end game of property development right from conceptual ideas to flexible end-use. I'll focus on the spaces where we live, work and relax.

I’ve been working in property since 1988. My development company Haxted is all about carefully designed, and well-crafted buildings. We create spaces with soul. Mainly homes but also workspaces.  There’s more about Haxted later but for now let’s dive right in.
 
I have strong views on the future of the industry and what's up. But these views are loosely held and when things change, our strategies and tactics change. Right now things are changing faster than ever. I'll share insights into what all of this might mean. If you invest in property, either in a business or personal capacity, this will be useful. 
 
At Haxted we are always on the lookout for how to improve the spaces we make. That means keeping a keen eye out for where change is occurring.  We create our strategies by synthesising all sorts of ideas from both conventional and unconventional places. I’ve found that the best way to do this successfully is to build agile teams of super committed and free-thinking people. We don't follow the herd. Being prepared to try new things now is more likely than ever to pay dividends. So I’ll share valuable frontline experience as we navigate this turbulent world of the future of property. 
 
At a time like this it’s all too easy to retreat as levels of anxiety and uncertainty increase. But I think there’s never been a greater opportunity to get on the front foot and re-imagine how we live and work. And to benefit from a new era of innovation. At Haxted we’re being imaginative about what’s ahead and how to tackle it profitably.

Covid-19 – Chaos and Opportunity 

 The global financial crisis of 2008 had the most dramatic effect on real estate markets and the built environment since the Second Word War. However the transformative changes being brought about by the Covid-19 pandemic looks like overshadowing that. The use of mass transit systems, the functionality of urban centres, and how and where we work, are all under review. Without any warning historically thriving industries are collapsing. Unemployment is climbing fast and will accelerate when furlough schemes and government support measures end. How we use space to live and work is changing. Maybe forever. 
 
We are living at a time of wild unpredictability and significant threat. But the knock-on effect of that is that we are also living at an inflection point where massive opportunity exists.  Only focusing in on one of those two outlooks leads to an abundant future. At this moment there has never been a better time to re-imagine the way real estate is done.  Value is being rapidly eroded across certain property sectors. In the retail, hospitality and office space many owners and occupiers are already in a severely weakened state. Others are understandably stepping back. Others still will not survive. 
 
When seismic shifts like this occur, and portfolio values decline as a result, someone else is afforded an opportunity to capitalise. But to do so requires all-in creativity. Creativity that is a marriage of intelligence - knowing what is, and imagination - knowing what could be. The early creative movers will gain momentum. And momentum is critical. Those choosing to stay long on cash may miss out.  The movers that do well will be those who are courageous and combine fertile creativity with disciplined strategy. Those that really thrive will combine early momentum and boundless imagination, with clear sighted, intelligent strategic discipline. It will require a whole new playbook. What worked before will not work this time. Covid is accelerating and intensifying trends that were already underway, whether that is changing patterns of commuting, the nature of office use or how flexible and adaptable we want our homes to be. 
 
The future is very uncertain but with clear vision and boldness, there is abundant opportunity to improve how we live and work.