The ecosystem can best be explained as a network consisting of manufacturers, suppliers, distributors, consumers, competitors, tenants, property owners, institutional and private investors, who dynamically interact through all forms of property; culminating in economic activity that fuels employment and start-to-end sustainability of all economic sectors.

Larger businesses hold a leadership role and evolve over time. Their function, as an ecosystem leader is valued by the community. It is impossible for an ecosystem to provide benefits, without considering the people (human capital), their communities (social capital), and their built environment (built capital). 

It is therefore important that larger companies consider the wider ecosystem and serve to protect tenants. This will result in improved jobs security, stronger business relationships and trust, for small, medium and large enterprises to sustain and continue being the largest employer and contributor to gross domestic product; in turn sustaining the wider ecosystem that will sustain property funds.

The services of the ecosystem can therefore be perceived as that, which contributes not only to the well-being of natural capital, but also to the sustainability within the property and institutional investors. 

According to The South African Property Owners Association’s (SAPOA), recent third quarter vacancy report, the overall vacancy rate of 12.7% is at a 16-year high and is projected to weaken even further in the short to medium term, resulting in further job losses. This will directly impact disposable income, debt and the financial products offered by pension fund institutions, causing a two-fold loss for institutional investors.

“What has hit investment markets are the multitude of warnings issued by companies indicating that their ability to operate and trade is being severely impeded.”
- Peter Foster, Fundhouse

To curb poor performance in property funds, it is important that current businesses are considered for their wider ecosystem synergies, in order to comprehensively evaluate the current and future financial state and allow the transformation and implementation of innovative methods on how to manage long-term investments.

Property Funds should have a business strategy to retain tenants and draw people back to brick-and-mortar to complement the start-to-end wider ecosystem for their own sustainability and that of the institutional investors.