How the pandemic continues to affect real estate market… Companies that own office buildings and hotels or rent out premises to bars, restaurants and other retail outlets have been hit hardest by commercial real estate, as the pandemic has forced many businesses to temporarily close or operate under restricted conditions.
Commercial real estate trends may take longer to recover as businesses reassess their needs in the wake of the pandemic. We spoke to Danny Court, Director and Senior Economist at Elliot D. Pollack & Company about this.
He explains why and what is most affected. He said more people are leaving places than signing up for new places. They see a lot of vacancies. He said they are even close to 20 percent.
Working from home isn’t going anywhere, so they think it’s going to be a hybrid between personal work at home. He said they will probably see more room for employees. He said that right before the pandemic, they saw very crowded office spaces.
There are certain areas that may not be at the top of people’s lists at this time, such as gyms and fitness centers. He told us that it is too early to talk about it.
We looked at the retail space. He said that they have been struggling for a while now because people buy things at home.
He said retailers are being pushed into industrial markets and warehouses instead of physical space. The court also said that retailers are not investing in new locations as they used to. In Arizona, “there’s a pretty strong retail market here.” he said.
We talked about solutions and what is a good balance for these areas. He said it was important to present Residential areas to help commercial space.
We also talk about whether this area has changed forever. He believes that this is so, and that many formats will remain.