It is no secret that the COVID-19 pandemic affected every aspect of our lives. With lockdown procedures put in place and many people working from home, commercial real estate took a hit as less spaces were being utilized.
The pandemic led to a massive increase of office vacancies due to the amount of companies that transitioned to remote work. This led to a decrease in the market value of office spaces due to the dramatic decrease in demand.
Hotels also saw a massive decrease in value as quarantine restrictions prohibited certain numbers of guests from being in the buildings. With strict cleaning and social distance requirements, full service and extended stay hotels felt the consequences of the pandemic for many months.
Today, both office and hospitality spaces are seeing a jump in popularity as pandemic restrictions continue to lift. With employees returning to their desks, many companies are looking for new office spaces which can be good news to office space landlords. Hotels are reopening as well, and it is expected that hotel occupancy tax revenue could reach over $500 million. That’s a nearly 50% increase from last year!
Even with the uncertainty the market can have at times, commercial real estate can be a wise investment. To learn more about investing in commercial real estate, take a look at the infographic below:
