Real estate has always featured prominently in portfolios of high-net-worth individuals and businesses as these investments have provided reliable and, often, substantial returns.
However, the global health crisis of 2020 has affected nearly every part of the economy, including commercial real estate. That means many companies may have to adjust their investment strategy.
Three considerations during the pandemic
While this year presents many challenges for businesses, it also presents unique opportunities. Here are three primary factors to consider:
- Office space demand: Health concerns have forced many companies to move their workforce from the office to online, utilizing conferencing software, such as Zoom, for meetings. Many have already said remote work will play a more prominent role once the virus subsides. While companies will reduce the number of workers in the office overall, they may prefer to move their top-level employees to more central and prominent locations.
- Digital property inspections: The coronavirus has encouraged companies to up their games over selling property. While pictures and videos have been the standard for some time, sellers can benefit from offering live video and virtual tours to give potential buyers the best experience possible without being there in person. On the flip side, buyers should be aware that photos and videos can be digitally altered to make the property seem more attractive.
- Property valuation: Regardless of whether you are buying or selling, the rapid changes related to COVID-19 could result in significant changes to property values. One likely impact is that large office spaces will become less attractive due to a more remote workforce. However, office space in prime locations might increase significantly in value as companies seek to place their workers in more ideal areas.
Buying and selling real estate during uncertain times
There are no guarantees in commercial real estate transactions during the pandemic. Buyers are wise to look for properties in ideal locations. Sellers may want to move quickly to lock in gains and be assured of paying tax at current rates. An experienced commercial real estate lawyer can help you assess the opportunities in Houston and protect your interests.