The real estate market makes news nearly every day. While residential real estate enjoys the biggest headlines, the commercial real estate sector has also undergone significant swings in the last few years. Now that we live in a largely post-COVID world, the commercial real estate sector is beginning to stabilize. A recent article notes the different factors still affecting the three primary commercial real estate sectors.
Office Space after COVID-19
During the peak of the pandemic, the office space sector suffered greatly. It takes no stretch of the imagination to understand that when employees are sent to work from home, employers stop renewing big office space leases.
The post-pandemic reality of commercial office space demand is of mixed success. Although employees have been returning to the office, many of them are still working from home a few days a week. As a result, employers continue to seek flexible leases for reduced office space. There is good news, however, in that this sector has been stabilizing.
Retail Space after COVID-19
Like office space, the retail real estate sector also faced difficulty during the height of the pandemic. Business owners who rented retail space were in an even worse position than employers because they couldn't generate income during COVID-19 lockdowns. In turn, they couldn't pay rent.
Although some businesses moved their stores online, those that were able to wait out the shutdowns are now experiencing near-normal returns to their brick-and-mortar stores. Unlike employees who are reluctant to give up their work-from-home models, shoppers have been eager to return to their favorite stores.
Warehouse Space after COVID-19
Warehouse construction and leasing have outperformed all other commercial real estate sectors, and experts predict they will continue to do so. Even before the pandemic, the need for fulfillment centers and the like grew. COVID-19 fueled e-commerce, and even in a post-pandemic world, the demand for industrial space far outpaces the supply.
Call a NY Real Estate Attorney Today
When you need legal advice concerning your NY real estate portfolio, call the office of Melvin Monachan, Attorney at Law. Our dedicated team can help you protect your assets or navigate mortgage default. To learn how we can help you, call (347) 389-1682 or contact us online today.