What Will Become of Commercial Real Estate in a Post-COVID World?
When the coronavirus pandemic reared its head in the United States back in March, people were ordered to stay at home to prevent the spread of disease. This meant that office workers were forced to work from home. Well, not many had to be forced to work remotely. Many are still required to work remotely, and they’re secretly hoping they never have to return to a physical office.
What will happen to commercial real estate after the pandemic is over? Will companies forego offices forever? Will the market dry up, leaving landlords without investment income? Not necessarily.
While many experts have predicted that the market won’t hold up due to a huge spike in telecommuting, this may not be the case. Research is showing that demand may decrease slightly, or maybe not at all. In fact, 38% of global real estate executives said that office space will remain as important as it was before and maybe even more so.
There is possible demand for high-quality office once the pandemic is over, as many companies (and employees) may be ready to return to a physical office due to the psychological effects of the quarantine. Many employees have felt isolated during the pandemic. They may be ready to see their co-workers. Some work better in an office space with others.
Many companies may opt to use a hybrid model, allowing employees to work both from home and in the office as they please. Many people will enjoy the social interaction that comes with being in the office with others.
When offices get back up and running and employees return to a somewhat normal working environment, the focus will be on wellness and hygiene. The design and construction of the office building will be a priority. Appliances, doors and elevators will likely have a contactless design to prevent germs. Ventilation will also be a focus so that employees will not be continually breathing bad air.
However, things could take some time, so it would be unwise to expect an immediate return to pre-COVID. Some types of commercial real estate may see limited activity for a while. People will continue to be cautious about their health. Restaurants, hotels and gyms are tied to foot traffic, which may be slow for quite some time as people continue to stay home and prevent mingling with others. However, once more people have received the coronavirus vaccine and herd immunity has been achieved, more and more people will be ready to leave their homes and live the life they enjoyed before the pandemic hit.
Learn More About Commercial Real Estate
While many may be concerned about the future of commercial real estate after the COVID-19 pandemic, predictions state that it will continue to be important. So if you lease or sell office space, you shouldn’t worry.
Orlando commercial real estate transaction lawyer B.F. Godfrey from Godfrey Legal can help you with contracts and ensure that your transactions go smoothly. To schedule a consultation, fill out the online form or call (407) 890-0023.