Most everything in our lives, and in Commercial Real Estate in particular, was affected by the COVID-19 pandemic. Retail took a nosedive and has begun a modest recovery; office remains floating in a sort of no-man’s land. But for the industrial sector, life continued almost as normal; certainly, there was no slowdown or abrupt halt in space demanded.
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Demand for commercial asset services has bounced back from the virtual standstill of the early pandemic days.
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People who have gotten used to the extra thirty minutes of sleep and wearing pajama pants all day may not have to worry just yet.
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The impact of the coronavirus pandemic and the supply chain problems it caused were felt throughout the commercial real estate industry.
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Over the past 20 years, sale-leaseback transactions have become a compelling tool for many companies to monetize their commercial real estate for a variety of reasons.
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At the beginning of the pandemic, we had “lockdowns” throughout the country to try to stem the contagion. Unfortunately, this also led to closures of many retail and restaurants establishments.
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While the COVID-19 pandemic drastically altered the commercial real estate landscape, it was perhaps a driving factor in the success of the land sector during the year 2020. In a survey conducted by GlobeSt., nearly 22% of land brokers experienced a significant increase in business during the pandemic, while 33.6% of brokers only saw some growth.
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Commercial real estate faced considerable headwinds in 2020 especially within the hospitality and retail sectors. While industrial continued to do well, office remained in a holding pattern with many companies taking a wait-and-see approach while the pandemic continues.
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The start of a new year brings hope for a better economy, the roll-out of a vaccine, and getting lives back to a new “normal”. But while we remain optimistic for good things to come, the COVID pandemic has unfortunately created a financial burden for many property owners who may have a more difficult time recovering from the shock of shutdowns and lost business in 2020.
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Owning and operating commercial property is no small feat. It also comes with a wide range of responsibilities. Whether you own an industrial, office, or retail space, there are many details to consider when looking for a property management company to partner with.
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