This is especially true around high density office and corporate environments. This means there will be a more active residential real estate climate and also coincides with the fact that more people are adjusting to a different work from home environment whereby the demand for office space inside homes and additional space is more important. Homeowners are looking to live in suburbs or vacation areas as they are willing to commute further at less frequency because of working from home.
"Projections from real estate services firm CBRE Group Inc. suggest that property values for apartments, offices and retail real estate won’t find their bottom until the middle of next year. Worse, the rebound to pre-Covid levels could take until 2022 or beyond. One exception to the trend: industrial real estate, the warehouses and logistics centers that have gained value as investors snapped up buildings essential to the delivery economy. Unlike the last property market downturn, which was caused by excesses and exuberance in the financial markets, Covid-19 has upset real estate fundamentals by changing how we lead our lives. Travel will be slow to come back, leaving millions of hotel rooms empty. Companies are already deciding they’ll need less office space than before, either because of staff cutbacks or because more of their employees will permanently work from home. And the rise of e-commerce—along with small business closures—will create a glut of retail space in a country that already had too much of it. By one measure, about a billion hotel room nights will go unsold this year. Foot traffic on Black Friday, the traditional start of the holiday shopping season, plunged more than 70% at shopping malls as consumers bought Christmas gifts online, according to S&P Global. More than 100,000 restaurants are closed permanently or long-term. “Retail will remain just a mess, hospitality will have a very challenging year, and, in more isolated instances, office will be problematic,” says Dave Bragg, a managing director at real estate research firm Green Street."
Bloomberg.com reports.
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