Here are the highlights of the conversation:
Where Things Stand Now
The office sector has, like most other CRE sectors, been affected by the pandemic in some very significant ways. Now that many states are a couple phases into re-opening what we are seeing is a change in the way businesses approach the office. There has been a lot of flexibility in the return, especially in scheduling employees in the office space, with many phasing in their return.
More Rigorous Financial Requirement
One of the greatest uncertainties in the ongoing viability of the business as the economic fallout from lockdown comes into full view. Especially with the potential for extreme measures in the future, landlords are trying to establish a better financial picture before proceeding with new contracts. Things like personal guarantees or receiving business financials are becoming more commonplace than before.
Future Opportunities and Trends
For investors looking to move forward with office properties, banks are still lending, although like we have seen in previous updates, the process is longer. There has also been an ongoing conversation about companies beginning to think smaller in terms of square footage, but its really too early to tell if that will turn into a real trend. Though telework has been successful for many, some speculate that instead of moving to a more “work-from-home” model, companies will start implementing new public health technologies (i.e. temperature scanners). Another theory is that instead of a smaller space, companies will want a larger space to incorporate more enclosed, single offices.
Like we have talked about before, medical equipment, liquor and beer, construction, and marijuana businesses are thriving right now, but elective surgery centers and the oil and gas industry have struggled throughout the lockdown.
For our part, we are continuing to show properties, but are trying to utilize virtual tours and increased public health measures such as face masks when in person is required. For more information about how McGraw Commercial Properties can help you with your retail property needs, you can visit ourIndustrial Services tab or call 918.388.9588 today.