commercial real estate The COVID pandemic affected nearly every segment of the economy, and Lincoln’s Commercial Real Estate (CRE) industry certainly did not go untouched during the rollercoaster ride of 2020. The retail and office markets took major hits after retail lockdowns and the massive move to remote working for a majority of the city’s office-based businesses. The downtown area was hit maybe the hardest, as consumers and office workers worked from home, college students took classes online, and COVID led to mandated shutdowns. By the end of 2020, the retail vacancy rate reached 7.1%, up from 6.6% year-on-year, and the office vacancy rate reached 9.6%, up from 8.3% year-on-year. At the same time, however, the industrial CRE sector thrived, driven in great part for increased demand for warehouse space for online companies creating delivery hubs. Renewed Life Nearing the halfway mark of 2021, however, the Commercial Real Estate market is showing signs of renewed life, as uncertainty fades, vaccinations are well underway, and equity markets are attractive against low Treasury yields. “We are seeing quite a bit of activity with smaller businesses and new ventures,” said Guiderock Commercial Realty LLC Broker and Certified Property Manager Cathy Kottwitz. “We’re also seeing more discussion
about space utilization, particularly allocation of shared areas versus private areas.” Still, rising construction costs are posing a bit of a challenge in getting improvements done in a cost-effective way, and it remains unclear when that might stabilize. “We hear often from people that they expected a bigger drop in pricing for both leased spaces and properties for sale,” Cathy said. “Lincoln has always been a less-volatile market, though, and for the most part, pricing Cathy Kottwitz has not declined given fairly strong demand. Since there are a variety of factors that go Guiderock Commercial Realty LLC into decisions about commercial real estate, we help our clients figure out the best path within the current market to get what they need most.” Guiderock Commercial Realty understands that commercial real estate is an ever-evolving industry. They strive to help you get the most out of your transactions and help you make the best decisions possible about leasing and investing in commercial real estate, with services including representing tenants and buyers, follow-up after every transaction, property management, and other real-estate consulting services.
Full Service Commercial Real Estate •
Tenant Representation
•
Sales and Leasing
•
Site Selection
•
Property Management
•
Consulting
•
Investment Services
•
Development Services
•
Broker Opinion of Value
John Linscott, CCIM, CPM®
Don Linscott, CCIM, SIOR
GREENLEAF COMMERCIAL REAL ESTATE 300 N 44th St, Ste 112 Lincoln, NE 68503
60
Strictly Business JUNE 2021
Brett Harris, CCIM
Adam Lowney
(402)-467-2525 www.greenleafcommercial.com
#PrintProudDigitalSmart
