Commercial Real Estate May Be In Trouble Even After COVID-19 Is Over, Winston Rowe And Associates
COVID-19 and its long reaching effects continue to change the way we conduct our everyday business, and commercial real estate practitioners continue to adapt to these changes on a daily basis.
By: Winston Rowe and Associates
Now, they're getting clobbered by the pandemic-fueled economic crisis. Worse, their industry may be forever changed by it.
On the commercial side, the problem is beginning to look as dire. In addition to the countless small retail and restaurant businesses that may be forced to permanently vacate their commercial spaces because they can no long afford them, a growing number of corporate chains is also beginning to prove unwilling or able to pay their rent.
Behavioral changes that may outlive the crisis.
Real estate owners and operators across almost every asset class are considering several potential longer-term effects of the coronavirus outbreak and the required changes that these shifts are likely to bring.
For example, within commercial office space, the multiyear trend toward densification and open-plan layouts may reverse sharply. Public-health officials may increasingly amend building codes to limit the risk of future pandemics, potentially affecting standards for HVAC, square footage per person, and amount of enclosed space.
At the same time, just as baby boomers age into the sweet spot for independent and assisted living, fear of viral outbreaks like COVID-19 may prompt them to stay in their current homes longer.
It is possible that demand for senior living assets could dampen, or the product could change altogether to meet new preferences for more physical space and more.
This article was prepared by Winston Rowe and Associates a national consulting firm that provides due diligence services for commercial real estate investors seeking capital. You can contact them at 248-246-2243 or visit them on line at https://www.winstonrowe.com
Winston Rowe & Associates