Following the pandemic, a lot of uncertainty is prevailing in the commercial real estate market. COVID-19 has changed how this sector of the economy operates. The norms of social distancing, quarantine, shutdowns, loss of jobs, and the new normal of work from home have impacted the requirement for space.
Interestingly, unlike the beginning of the pandemic, when the new normal of work from home was unanimously approved by all and sundry, with every passing day, the need for a person-to-person interaction is being increasingly felt. As such, many workers are waiting to return to their workstations.
The demand of office and other commercial space – A bird’s eye view by Benjamin Gordon Cambridge Capital
Are offices in demand these days, especially when most of the people are working from home?
With this change, the need for organizations and business entities has evolved. Also, remember, these days, more and more people are preferring touchless technologies, improved indoor air quality, and isolated and social distancing- maintained cubicles.
Some offices are opting for a combination of work from home and an in-office model of operations. As such, what needs to be seen is what square feet of space will be required for such offices.
The need for office space is still there, which also translates into the meaning that office space is still not redundant.
However, there are the tenants that still look for premises that might be let-out provided they are safe for all, with equipment for better air quality.
Commercial Real Estates that are still very much in demand
Benjamin Gordon Cambridge Capital identifies those areas of the commercial real estate that is still in demand and were not adversely impacted due to the COVID-19 pandemic at least not to the extent as the other sectors of the economy.
For instance, the warehouses operating for E-Commerce websites are fully occupied. Aside from this, the self-storage facilities are active. Also, pharmacies and storehouses for grocery stores are functional and very much in demand. As such, you will still find investors willing to shell out money for these spaces.
Some people are on the lookout for spaces that might be for distressed sales and takeovers. Experts think that a sense of volatility will continue to rule the commercial real estate market during the pandemic.
Aside from this, offices will continue to operate under an in-office and remote working mode at least for the near future. It is also recommended that those office spaces that were built several years ago and did not comply with safety requisites or safe working environment all these years must change their setup and implement changes that will ensure that workers are safe while working in the in-office environments.
Commercial real estate has lived up to the challenges. However, this is perhaps the best time to reinvent business models and bring about the necessary changes that will offer the best working environment for workers and ensure safety and a healthy ambiance for all.