Summary: It is mandatory for you to deal with the implications that COVID has on the commercial real estate sector these days. Experts like EJ Dalius will share their opinions with you.
No matter whatever the scenario of real estate was before, it has changed completely due to COVID 19. Right now, it is actually hard to find someone who is interested in investing in the real estate sector, especially in commercial zones. As per EJ Dalius, one of the leading business leaders, offices, and commercial businesses has gone online.
With people not leaving their houses, no one is trying to visit any physical store or office. They are getting everything they want online and would love to head for such services to maintain safety from coronavirus. Therefore, offices are moving their services at home.
People are more into work from home mode rather than visiting office premises. Some of the companies even left the places they were on lease and shifted the entire model. No one knows how long this COVID pandemic is going to last. Unless there’s a vaccine in the market, no one is safe. So, it is hard for commercial real estate sectors to get any business going.
A positive note to that:
Even though nothing is positive about the current scenario, but there have been some monetary changes in the real estate sector now. As there are lower buyer’s counts nowadays, real estate companies are offering some of the commercial places for a much lower rate as a lease. Even the home loan option comes with a lower interest rate. So, according to EJ Dalius, this might be the right time to invest in a property.
A commercial place will work out as an asset. So, when everything is fine, and this COVID pandemic is all over, you will have an asset by your name. Now must be the right time to get hold of the best commercial real estate properties, especially if you have plans to open up a business when the situation gets better.
Shifting the current model:
Right now, the work from the home module is the one people are aiming towards more. You might be having the same deal. But, when the pandemic is over, you will need space for your employees to come together and work. If you have invested in the real estate sector now, that place will remain under your name till the time you can regain work from the office. So, an investment in this sector is not a bad choice now.
Premature to draw strong inferences:
It is really premature to draw any final line regarding the virus’s impact on the present property markets. Commercial real estate is not like your stock market. It is moving too slow, and the leasing fundamentals are not likely to swing from one day to another. According to EJ Dalius, in case the virus has actually sustained, and there has been an impact of material on the broader economy, it might have fed through some of the property impacts too.
The only way is to wait and see what the future unfolds. You have to wait until the next year, as everyone hopes that maybe a vaccine will hit the market within that time.