The COVID-19 crisis has thrown the real-estate world into disarray, transforming how professionals and companies operate, occupy, and finance real estate. Commercial real estate personnel have been navigating through new challenges, such as the shift toward the work-from-home model, finding buyers during an economic recession, handling virtual showings, etc., and trying to make sense of the current situation. However, since the pandemic hasn’t subsided yet, they can’t be sure of what lies ahead.
The current climate is expected to influence real estate trends in the upcoming months and years. If you’re part of the real estate industry, you should be prepared for them ahead of time. To help you out, we’ve compiled a list of the most significant commercial retail trends for 2021:
1. Offering Smart Amenities
As mobility restrictions are imposed on and off by the state, regional, and local governments, smart amenities are no longer being considered as an add-on feature for commercial retail properties. In fact, they are being regarded as mandatory features. While this trend was already increasing before the arrival of the pandemic, it’s now rising at exponential rates. In the next 12 to 24 months, it’s quite possible that all commercial properties will come with smart amenities.
2. Property Maintenance Will Become a Priority
Since the arrival of the pandemic, people are more concerned about ensuring proper hygiene than ever. This has significantly increased the importance of property management services. This is particularly true for commercial properties that are regularly visited by employees and clients.
Retailers, shop owners, and other commercial property owners are regularly implementing cleaning and sanitization practices. Hence, companies are expected to invest more in the maintenance of facilities, which will become an integral part of the brand experience.
3. A Surge in Demand for Essential Businesses
The most noticeable commercial retail trend is that most investors are reallocating their capital and investing in essential businesses such as auto repair service centers, grocery stores, pharmacies, quality guarantors in fast food, medical companies, and dollar stores.
In the high-risk market of today, investors are concerned with maintaining a stable cash flow. Since these businesses are considered safer, they're the target for the massive reallocation of capital. Property managers are choosing tenants who’d pay rents on time.
4. Technology Influencing Property Value
Digitization has affected every other industry, and real estate is no exception. The advancements in technology and digital connectivity are altering our approach to the use of land and the built environment. As we head into the future, the full impact of the internet on the value of land should become clearer.
Commercial Retail Trends In New York, New Jersey, and Florida
The commercial retail trends discussed above should help you prepare for what lies ahead in the real estate world. For more updates, stay tuned to the latest news from Milbrook Properties Ltd.