The COVID-19 pandemic continues to decimate how the United States lives everyday life. During these past 4 months, problems continue to mount, and people toil with this new reality, and businesses struggle to adapt to this troubling environment. Real estate investing has also felt the negative effects of this new normal, and as this pandemic continues to linger, investors may be in for a bumpy ride. Here are three trends that investors should keep in mind for the near future (and possibly the long term), to avoid potential losses and make strong, strategic decisions when investing:
First, commercial spaces may start to be in less demand. As the country started to lockdown in March and April, businesses were forced to transition from physical storefronts to online sales. For those that were able to successfully utilize their online model, such businesses may cause a drop-in demand for commercial spaces in the coming year. Similarly, companies had to require employees to work remotely for the past months. This pandemic has been an eye-opening experience, as companies are recognizing that remote working can be a sustainable model going forward. This realization could directly affect the need for office spaces in the future.
Second, companies will be seeking larger commercial spaces. For those businesses that cannot rely on e-commerce or remote working, will want to favor larger space for their employees, clients/customers, etc. to keep up with appropriate social distancing guidelines and foster a safe office environment for everyone. This pandemic has been a harsh reminder how corralling large groups of people is not ideal for public health, whether we’re in an exceptional situation like a pandemic or for the yearly flu-season. With the desire for more expansive space, smaller offices and storefronts might see a drop.
Lastly, people may decide to leave urban apartment living for houses in suburbia. The COVID-19 outbreak has affected major metropolitan cities (like San Diego) the most. City dwellers, who primarily live in smaller apartments, may seek the larger expanses of suburban neighborhoods. More square footage in your living space will be an attractive thing for people that have been stuck in self-quarantine in their city apartments.
If you need some help with looking for real estate investment opportunities, I-Deal Homes Real Estate can help in your search. Feel free to call us at (858) 333-2255 or visit our contact us page.