The commercial real estate landscape was already being influenced by innovation and technology when the world was hit by COVID-19. The pandemic only accelerated this market trend. With buyers, sellers, and renters having a totally different approach to finding commercial vacancies, property owners are forced to rethink and adapt to a new way of doing business. Let’s take a look at what the future holds for the commercial real estate market:
Most Significant Changes
The notable shifts in people’s shopping habits to digital platforms doesn’t mean that physical retail centers, shopping centers, or strip malls won’t exist at all. For many day to day items, people are not willing to give up in-person shopping experience, and are returning to malls as the pandemic scene gradually fades. The implications suggest that investors would prioritize brick-and-mortar commercial locations that offer curbside pick-up locations and drive-throughs.
Also, from port to warehouse to last mile, new facilities should be in high demand, which means significant opportunities exist for the eCommerce supply chain. With the increasing popularity of online grocery shopping, cold storage has already become a need.
Besides, the closure of entertainment venues, travel offices, restaurants, and shops to contain the pandemic has caused ripple effects in the entire economy. From retailers to multi-family landlords, borrowers faced a drop in their rental incomes, facing difficulty making their mortgage payments. Thanks to government relief programs and rental assistance, property owners managed to maintain a steady cash flow. Many agreed to modify loan terms for corporate borrowers.
The same is expected in the future of commercial real estate. Lenders are likely to think long-term as they have realized that mutually beneficial solutions with borrowers work in the best interests of both parties.
Commercial Real Estate In New York, Florida, and New Jersey
This was our take on the future of commercial real estate. Whether you’re a borrower, lender, or a retailer looking for a retail vacancy, keep the aforementioned insights in mind. For high-end commercial vacancies in New York, New Jersey, or Florida, contact Milbrook Properties today.