What commercial real estate trends are on the rise in 2021
What does a commercial real estate market look like after COVID? | Photo via Trinity Partners
Let’s talk about trends, cola. (No, no midsections and skinny jeans.)
When we were looking forward to an existence after COVID, we asked the professionals Trinity Partners tell us What will Colombia’s commercial real estate landscape look like in 2021?. Here’s what they had to say:
Office:
○ It is expected that as The introduction of the vaccine will continue, office activities will increase. Some, however larger corporate tenants make their rooms available for subletting or try to negotiate early buyouts with landlords.
○ Regional companies with local guide tended to return to the office first in 2020. Many national tenants continue To work from home + are expected to do so by mid-2021.
○ For those returning to the office in 2021, there will likely be one new protocols available to ensure that a safe working environment, to like staggered employee plans, New Hygiene and protective examinations Similar to some public schools, “employee experience initiatives” + more were carried out.
○ costs for Tenant outfits ((Read: Design Changes) have risen during the pandemic because of increased material costs and competition for skilled workers. If this trend continues Landlords have one hard time to offer tenants incentives for offers that require it major renovation.
○ Trinity Partners predicts that The work from home model will not have such a large lasting impact beyond 2021especially for companies experiencing a loss of productivity and collaboration. ?
Retail / Restaurant:
○ Good news: Leasing activities in the retail sector are on the rise again after a slow Q2, Q3 and Q4 of 2020.
○ Many retailers require Leasing protection of future pandemics, shutdowns, etc..
○ A bittersweet reality: There will probably be one Increase in available locations as a result of retail and restaurant Closures.
○ Trinity Partners Predicts Dentist, imaging, emergency and primary care offices can start to fill some of the open positions in retail created during COVID.
Industry:
○ Space is in In short supplyso are tenants Renewal of existing roomsLandlords offer fewer concessions and Rents are trending upwards.
○ E-commerce is growing rapidly. Expect to see extremely vigorous activity with big box industrial spaces powered by mass distribution + Shopping online.
○ We can also see more speculative development (Read: Land Development Or Construction Without A Specific End Product) given the tense situation in the market. Currently there are 7 projects proposed or under construction in the size of 125,000-500,000 square feet.
○ SC counties were in Land acquisition mode. These plots are intended for this large Manufacturing projects, promote Job creation.
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