Managing Real Estate in a Pandemic
ZUNE TH
S AT TA R
Managing Real Estate in a Pandemic In the early months of the coronavirus pandemic, much of the discussion in the real estate industry was focussed on the pandemic’s short-term effect. However, as efforts continue to deal with COVID-19, the focus has shifted to how the industry will change in the long-term.
IN THE EARLY MONTHS OF THE CORONAVIRUS PANDEMIC, MUCH OF THE DISCUSSION IN THE REAL ESTATE INDUSTRY WAS FOCUSSED ON THE PANDEMIC’S SHORT-TERM EFFECT.
Sector Differences A lot of the pain in the property market has been felt by retail players, especially smaller businesses for whom lockdown measures cut off access to customers. Commercial owners also felt the effect, with many of their clients requesting rent deferrals or other arrangements to ease the financial pressure. In the future, real estate companies will continue to monitor this trend and how it impacts lease agreements.
Future Deals For some investors, the pandemic has provided opportunities to invest in distressed properties. Many are on the lookout for deals, with many available opportunities being transacted in cash. Still, some patient investors will wait for a few months to gather information on discounts and which sectors will come out strong post-pandemic.
Millennials’ Needs Millennials form a significant portion of customers for real estate developers. For them, developers might need to consider smaller ‘starter’ units that millennials can live in as they recover from the economic impact.
Millennials form a significant portion of customers for real estate developers.
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