While the economic disruption caused by the COVID-19 pandemic is indiscriminate, the commercial real estate industry is one of the hardest hit. Hotels, bars and restaurants, entertainment complexes, sports venues, retail and the commercial office market are severely impacted as people and workers stay home following shelter-in-place orders and business shutdowns.
Challenges for Corporate Landlords, Tenants, and Buyers
At one end of the spectrum, commercial tenants are sending requests for rent relief to their landlords as they are unable to operate at full capacity from their premises or generate business cash flows. On the other end, the landlords themselves are facing challenges because they have bills to pay, and they cannot sustain too long without generating rental revenues.
From the perspective of commercial real estate buyers, sellers and investors, the market is in a state of disarray as it is hard to foresee whether the current economic decline will worsen or will it all clear up soon. If the recession is short-lived, fresh demand for office space should pick up as soon as jobs come back. But if the economy takes longer to revive, the commercial office market may continue to be somewhat subdued.
Although the warehousing and industrial space market is currently facing supply chain disruptions, this is one sector that could bounce back very fast once economic activity begins to gather pace in the US and other parts of the world. Warehousing demands could significantly rise, considering that more consumers are expected to rely on ecommerce than ever before.
Redesign Office Spaces
Innovative commercial real estate operators and corporate interior planners and designers are already working on how corporate, education, healthcare, and other commercial spaces can be adapted/redesigned to meet the future needs of safe social distancing at the workplace
Creative solutions can be found to achieve the goals of social distancing at work, while maintaining a cost-effective, comfortable, and fully functional workplace for employees, customers, and other business associates. For example, forward-thinking companies such as Corporate Interiors are creating a range of practical solutions to meet the new office needs.
These solutions can be efficiently implemented to transform your workplace enabling you to restore normalcy to your business operations as soon as possible – without any compromise on the social distancing norms that may continue to be in place for the foreseeable future.
Corporate Interiors is providing solutions that maximize the use of existing furniture, while putting in place additional barrier screens and other social distancing provisions in high traffic areas at your office. Clever and Creative.
Prepare Well to Get Ahead
It is best to start preparing now to set up these new solutions (such as the ones offered by Corporate Interiors) at your workplace. So, when the local economy in your area opens up, you will be fully geared to re-start at full capacity while ensuring the best social distancing standards and practices for your employees and visitors.
From the point of view of a commercial real estate tenant, buyer, this could be the time to find opportunities at compelling prices and at the lowest possible financing rates than you might ever get again.
PG Commercial Real Estate, Inc. has more than two decades of experience in representing corporate tenants and buyers with exceptional market insights and dedicated due diligence. Contact us now to learn more about how we can help you obtain a competitive advantage and achieve your goals in the most effective way in the current market.