Working from home has become the norm, but actually, in places like London and New York, we’re seeing a yearning to return to the office once more. Who would have thought that we would have become to love our office spaces as much as we do right now? It’s quite incredible how the world’s opinion has shifted. Working from home is great for some, but for the majority of people, it’s too entrapping, stifling and it lacks the camaraderie that we have all gotten used to in our workplaces. So, this throws up the question, will commercial real estate make a comeback and is it worth investing?
The long dip
New York commercial real estate has been hit, perhaps the hardest out of all major cities in the Western world. Analysts are saying that it won’t recover until 2022. This just means, you have a long dip investment opportunity. The prices of offices have gone down, along with the overall square foot price.
Office space vacancy is at an all-time high. By the middle of this year, it stood at 13% but many analysts say that this will increase to 18% by 2022 before it makes a recovery. This is unheard of and it’s due to the handling of the virus by the governor of the city, as well as people choosing to work at home. The rents for office space have dropped nationally by 10-15% and that is great news for those looking to invest.
Investing in property
That begs the question, should you invest in office space, floors or entire high-rise office buildings? If you’re a major investor, you should consider large scale office space. You should lease an office space to businesses by creating a workspace that is open to entrepreneurs and small business owners that will be at the forefront of the economic recovery. The Military Park Building has 6000 square feet on offer while the Robert Treat Center has 4000 square feet. These types of opportunities won’t hang around for long, especially not in areas such as New Jersey that are so close to New York City. The client base is very strong, with many small business owners looking to expand while they have the financial ability to do so, and while prices remain low.
When it comes to investing in property and managing it, it’s worth looking to work with other companies so that you can delegate some of the responsibility where possible. A Multifamily Construction Contractor, for example, is a great way to help with any of your properties that need renovations or repair work doing to them. It can save you a lot of the hassle and time that can come with making sure your properties are in good condition for any tenants that use them for business or live in them.
Of all the industries in the real estate sector, leisure is perhaps the sleeping giant. We all want to go on holiday, but with national lockdowns and flights being canceled, that is a possibility in the distant future. BUT, we know that it WILL happen. So, investing in hotels, resorts and spas is a great idea, while the prices remain so low. Namely, investing in areas that are popular with affluent holidaymakers yet, the currency is weaker than the dollar, such as the Caribbean or East Asia, is where you stand to make the most lucrative gains.
Commercial real estate is set to be a fantastic investment opportunity as the prices will remain low for a couple of years. It makes sense to pour your money into this sector now and scoop up some amazing deals.