With the commercial real estate market fluctuating highly in the wake of Covid-19, it is important to be aware of the trends in the market. Rising office vacancy, plummeting office property prices, and reduced office space demand per employee are several factors complicating the market right now. Many investors are waiting on investments to see how or when the market corrects. Despite these challenges, the United States is widely considered very stable with good growth prospects, outperforming other countries by an average of over 10%. Generally, investors are waiting to see if this season will bring new opportunities for their business, or if it is a matter of another six to twelve months.
Opportunities are occurring in the hotel sector, data centers and real estate, multifamily suburban home investment, and (specifically in New York) the conversion of office spaces into residential units. In addition, there is a potential for a spike in office occupancy and options for dynamic lease pricing on a case by case basis that may involve changes to the office space. The ability to profit off of distress and disjuncture in the market will be a necessary skill in the coming year, as the market continues to be in flux.