VIVA NOLA December 2020

Economic Development
Better Business Practices
During Uncertain Times
Por Alejandra Guzmán
@aleguzman
30 VIVA NOLA ~ December 2020
Navigating the current environment
has become a challenge for
businesses in every sector. In
the Real Estate Industry, one of my
main focuses with the New Orleans
Business Alliance, there has been a
lot of uncertainty. I have been taking a
close look at what is happening in the
public and private sectors and consumer
behavior. Ultimately, the Real Estate
Industry, and almost every industry for
that matter, is affected by these three
areas. Without a doubt, one of the most
challenging aspects of these times
has been uncertainty. COVID does
not have a precise expiration date. A
couple of weeks ago, we did not know
the presidential election results, and
we still do not know if some of the
consumer trends will stick for the longer
term. However, it is also essential to
acknowledge that there are other things
that we do know. For example, we know
that critical federal support will continue.
A great example of federal support is the
Opportunity Zones Program. This vital
tool was established by Congress as
part of the 2017 Tax Cuts and Jobs Act
and aimed to increase investment and
revitalize communities. Since most of
this program is in private hands, it offers
a simple way to reinvest capital gains
into distressed communities through
Opportunity Funds.
There has been increased interest
in investments with social impact
within the private sector, particularly
those promoting equity, diversity, and
inclusion. This interest is part of the
corporate response followed by the
killing of George Floyd. For example,
Bank of America announced that it
would be committing 1 billion dollars
to economic opportunity initiatives.
They understand that the underlying
community and social disparities have
accelerated and intensified during
the global pandemic. Mastercard has
pledged $500 million to help close the
racial wealth and opportunity gap for
black communities across America. This
year, several companies have decided to
add Juneteenth, which commemorates
the end of slavery in America, as a paid
company holiday. The list includes
companies like JCPenney, Google,
Target, Lyft, Mastercard, The New York
Times, and Nike, among many others.
PWC released a survey that shows
how consumers are in “limbo” with 49%
of consumers surveyed are avoiding
leaving their homes, 50% are working
from home remotely, 42% avoiding public
transportation, and 57% practicing social
distance from friends and community.
Nesting at home means there is much
more leisure time, leading to other
consumption patterns such as online
shopping, exercising at home, cooking
more at home, etc. These consumer
behaviors could ultimately have a
long-lasting effect on how businesses
operate, and because of this, many
companies are currently evaluating their
real estate needs.
With all of this happening in our
environment, businesses and
professionals could follow some best
practices: 1) Base your strategy on
what you do know, 2) Stay in touch with
industry leaders through professional
associations, and 3) Leverage business
tools available to the public.