After the turmoil caused by novel coronavirus pandemic, NAIOP, the Commercial Real Estate Development Association now foretells that the outbreak might lead the long-term commercial real estate edge towards some beneficial changes, especially the industrial and warehouse sector.
Last week Dr. Timothy Savage, a research economist for NAIOP, updated his viewpoint in the trends in industrial, retail, and commercial real estate, saying that the commercial real estate has been facing technological disruptions even before the Covid-19 crisis, which was more of the natural disaster kind than a financial one.
The trends have been in the following sectors:
Industrial and Hospitality: In a report named The NAIOP Industrial Space Demand Forecast, it had forecast (prior to the coronavirus outbreak) a decreased demand in the mid of 2021, due to a short supply of available space and economic uncertainty but regaining back to strong levels as seen in the early 2019.
There will be negative impacts on the hospitality sector yet will make headway soon after.
Retail: As Covid-19 continues to spread, there would be a decrease in retail, particularly small and independently owned businesses.
Office: Changes in the work patterns will be favorable for the office sector given de-centralized work and co-working.