Are you planning to invest big this year but are unsure of the current real estate market trends in 2020? You’re not alone. Research has shown that vacancy rates in the retail and industrial real estate sectors were significantly affected by the pandemic, doubling much more in the first half of 2020. Whether you’re selling a property or purchasing one, COVID-19 has significantly altered the commercial property market with virtual displays, looking for buyers amid an economic recession, and the significant shift toward full-time remote work.
Here are the top factors driving commercial real estate trends in 2020.
Newly Accessible Subleases
With more work from home arrangements, the need for physical space has substantially decreased. COVID-19 has negatively affected businesses worldwide, but there’s now a larger volume of subleases emerging in the market.
Newer companies are looking for flexible terms and space, so you might see subleasing as one of the top trends steering the commercial real estate market.
The Need for Office Space in the Home
With the need to continue operations amid a pandemic, you’ll see an ever-increasing trend of people working from home. Because of this, there’s added value of people’s homes given their workplaces have shifted from their office space to their houses.
On the other hand, this has had a damaging effect on offices and commercial spaces, given that they’re no longer being used the same way as before.
Management of Remote Work
As a business owner, the pandemic has only made work harder. While telecommuting is being used to manage critical business initiatives, it’s not without its challenges. Companies are trying to ensure the safety of their workers while trying to utilize their office space.
This is because an office location has data connectivity, electrical power, and other security features required to maintain operations and sales.
Prioritizing Property Maintenance
Consumers are now giving more importance to disinfecting and sanitizing real estate properties. Now, well-maintained sites with spotless floors and a visibly clean look are instilling confidence among clients since safety has become the highest priority during COVID-19.
Ambiguity Around Retail Business Operations
There’s growing uncertainty about the type of businesses that can operate amid the pandemic and its effect on their assets’ values.
Businesses like hair salons and nail salons were previously resistant to economic fluctuations but are now having trouble sustaining their operations during intermittent closures.
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