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.
Demand for commercial asset services has bounced back from the virtual standstill of the early pandemic days.
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.
The impact of the coronavirus pandemic and the supply chain problems it caused were felt throughout the commercial real estate industry.
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.
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.
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.
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.
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.
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.
