The pandemic saw real estate begin a dramatic decline. Images of abandoned skyscrapers, closed restaurants, and higher demand for domestic real estate than ever come to mind. Yet while some areas of real estate are struggling, others have been surprisingly resilient, and others yet are even thriving.
Take office spaces, for example. Following the pandemic the demand for office space has dropped 15% due to remote work. This has led to lower commercial property prices and mass office vacancies. Yet other real estate sectors, such as data centers and industrial real estate, have held static. The pandemic, while revealing that some real estate was ultimately unneeded, only affirmed the value of others.
Housing, most prominently, is thriving currently. The empty office spaces of places like New York are now powerful pieces of real estate for residential units. Suburban homes being in high need has led to a shift in investment from office spaces to multifamily rentals. While overall on a downward slope, investors are finding areas of real estate to make money in.
Ultimately there are dozens of forms of real estate, from special purpose, to retail, to office, to mixed-use. Each one has its unique ups and downs, positives and negatives, what’s ultimately important is the knowledge of those traits. Real estate is changing, for those looking to enter the industry stay up to date. The pandemic showed how rapidly things can change, and who knows what’ll shake up the market next.
Learn more about commercial real estate in Orange County, NY and beyond in the infographic below: