Originally published by Ron Derven for NAIOP's Development Magazine Summer 2021 Issue.
The post-pandemic period could see a lot of innovation and experimentation in commercial real estate.
COVID-19 delivered a gut punch like no other to the commercial real estate industry last year, with transactions in the second quarter of 2020 plummeting approximately 40% over the same period in 2019.
By the fourth quarter of 2020, however, sales activity had nearly recovered, according to John Chang, director of research with Marcus & Millichap.
“Investors adapted to the new climate and devised new solutions to address the many obstacles to getting business done,” Chang said. “Barring a new, severe and deadly outbreak, COVID-related challenges ahead will likely be speed bumps for the commercial real estate industry rather than roadblocks.”
As vaccine distribution continues to ramp up and cases decline, here are eight key takeaways that developers and owners can use to get people back to work and play at their properties, to monitor how various asset classes are emerging from this catastrophe, and to mitigate the financial impact of potential future shutdowns.