Commercial real estate market could be set for a big rebound

On Behalf of | Jan 4, 2021 | Real Estate |

A lot of things have been uncertain lately in life and business, and that goes double for commercial real estate.

With many people working from home, office buildings are much quieter than usual. Some companies have decided to end their leases and work remotely for the foreseeable future. Meanwhile, the hospitality industry is hurting badly, many retail companies have declared bankruptcy, or gone out of business completely, and many people are out of work. This is a time when many investors may feel especially cautious about risking their money on new commercial real estate ventures.

An optimistic view

Still, some forecasters think things are looking up in the long term, even if things will continue to look bleak for a while in the short term. Commercial real estate experts say that companies that can make it through the next nine months are poised to reap the benefits once their customers return to great socializing, traveling and their old spending habits. Many analysts say Americans will be eager to return to restaurants, movie theaters, brick-and-mortar stores and other commercial real estate properties after months of hunkering down at home.

To survive long enough to enjoy that time, many companies will have to cut costs. The professional services network Deloitte found that investors plan to pull back by an average of 25% this year.

Careful planning

Planning for the future always involves a lot of risk. In a costly business like commercial real estate, the risks can be very serious.

To learn more about how they can manage the risks and protect their investments and their businesses, people involved in commercial real estate can talk to lawyers with experience in real estate law.