Due to Covid-19, there has been a lot of uncertainty regarding commercial real estate. In many areas, Florida’s commercial real estate occupancy is at a 10-year high. However, with the pandemic still affecting our every day lives, many people still wonder if it’s a good time to invest.
The pandemic has affected the real estate industry in many ways. Because of social distancing, shutdowns, remote work, etc, the demand for space has been greatly impacted. As a result, the market for commercial real estate has also dramatically changed. At the begging of the pandemic, it seemed as if remote work would become the new standard. However, as months have passed, many people are aching to go back to an office setting.
Although so many people are working remotely, there is still demand for office space. However, the pandemic has greatly impacted what people are looking for. Before Covid, companies would look for office amenities such as gyms, lounge areas, meeting rooms, etc. Now, there is demand for office spaces with touch-less technology, indoor air quality, and ample space for social distancing. A lot of companies are looking to establish a balance between working remotely and in-person. Therefore, prospective tenants are actively looking for spaces to provide a healthy environment for everyone involved.
There are other sectors of the commercial market that show steady activity during the Covid-19 pandemic. For example, warehouses for e-commerce, storage facilities, and some retail spaces (i.e. for supermarkets and pharmacies). Thus, many investors have remained active in the market during this time.
As the economy evolves, experts expect things to keep moving within the commercial real estate market. Remote work is likely to continue, and demand for covid-safe office space will remain. Overall, the commercial real estate market has risen to the challenge.