In some sectors, the Baton Rouge real estate market in mid-2021 looks set to shape as local real estate brokers predicted at the time last year.
The office sector, which was already weak before COVID-19, has been reeling from massive disruptions caused by the abrupt shift to work from home. While some employees have returned to the office – and there will be more in the coming months – entire industries now realize they can downsize their office space and save on rent without sacrificing productivity.
The retail sector was hit hard in the early stages of the pandemic, when vacation home orders began to take effect, and the already rapid growth in online shopping grew exponentially. But the restaurants, salons and health clubs that fill the growing space in malls have since recovered as a population tired of being locked up for months of 2020 happily isn’t spending federal stimulus money.
In the industrial sector, there was a small uptick in activity in 2020, driven in part by the demand for fulfillment and distribution centers, which are a key component of e-retail logistics.
But while none of these industry trends are particularly surprising given the circumstances, there are some curious facts about the local market, namely: what is behind the boom in the residential sector at a time when the population is not growing and the number of jobs is shrinking?
Read full coverage package on the condition of Baton Rouge real estate from the latest issue Business report.