How is your commercial real estate positioned?
Entering in the market...Alternative opportunities, exit Strategies, 1031....
Commercial real estate markets not only in the United States but across the globe have been severely battered by the devastation of Covid-19. No variation was unscathed. Office space, Retail, small business, and most especially restaurant space was put on hold, or in our opinion, put “out of business.”
Unfortunately, many industries are facing serious economic challenges, but in times of restructuring and rapid technological and social development, opportunities abound. With employee’s working from the comforts of their homes to restaurants delivering meals, beverage and even liquor, commercial real estate investors and their markets will have to get creative and rethink how to use and offer commercial real estate moving into 2022 and beyond.
Not surprisingly, due to the collapse of retail and consumers ability to move freely within their communities, e-commerce or “online retail” sales soared, seeing a 40% increase just in 2020. Of course, the pandemic facilitated this massive shift away from small businesses and brick and mortar sales, however, let’s be honest, this technological revolution has been creeping up on us, and the pandemic has only catalyzed the shift away from the physical world and increased our reliance on the digital one.
Moving forward, commercial real estate will see major changes, not necessarily in how much is available, but in how we as businesses and communities decide to use this space most efficiently. With large reliance and development in the online retail and delivery industries, industrial and manufacturing space will surely expand and see success with large and small vendors alike requiring more and more storage, inventory, and even manufacturing space.
Although many companies and employees have adopted work from home policies, the need for office space moving into the future will still exist, however again, may look a little different. From shared, co-working small office space, to larger spaces leased to multiple companies to work from different days of the week, office space and collaborative work areas are a necessity to how businesses and individuals function best.
Contact us today to learn more about how we can help you with alternatives! Please visit our Private Clients page to participate and learn more about your options https://www.mvplwrc.com/privateclients
We invite you to reach out and have a conversation today! 775-365-9429
A special thanks to Joe Hall for his insight on commercial markets today!!