Archives for October 2020

COVID-19 has been devastating for the world for both health and economic security. The pandemic has also changed how people are viewing property construction. There is now need for cleaner building design and air filtration which has been key to reopening businesses. Building designers have been creating new construction plans that will help with air circulation and implementing systems to reduce particles from entering the air. Businesses are also adding outside space including terraces, so that employees may work outside where disease transmission is reduced. Other companies are installing blue lights and changing the inside of buildings floor plans to be more open, allowing people to physically distance more comfortably. The virus has sped this process up for many architects. Work spaces will continue to evolve as we learn more to best meet the changes in our world. 

Many commercial properties have dropped in value. Investment opportunities have fallen a total of 38% in 2020, but things are looking up as we move into next year! The projected investment opportunities are expected to rise to as much as 50%. This may be an advantage for investors to begin buying. If you are someone looking to get into the commercial real estate business, according to the projections, now may be the time to buy and invest in property.

Commercial property values have started to decrease as a record amount of people are working from home and stopped coming into the office due to the pandemic. It only makes sense that commercial property values have started to decline. Banks are challenged as there has been a reduction in new property loans, plus they are an integral part of the new loan forgiveness for businesses. Other properties having trouble obtaining a steady income are hotels whose occupancy is 29% below pre-crises levels and restaurants, 100,000 have closed in the last six months. COVID-19 has affected our health and economy. This is our new normal and we must learn to adjust to move forward.