It’s no secret that the pandemic of 2020 upended every facet of living. The commercial real estate sector was affected. How will the crisis affect the commercial real estate market in the coming years? Simon Kronenfeld is one example of a real estate professional who has some suggestions on what to expect. These are just a few of the examples you might want to consider.
Finance is expected to remain affordable
Simon Kronenfeld and other professionals can point to lower rates of financing commercial real property over the past year. The good news is that there’s every indication that the cost of financing is likely to remain steady during this year, and into the next few years. This is a fantastic opportunity for those who want to make a profit in renovations or commercial construction.
Stable interest rates are one way to rebuild confidence after the recent financial blows that many have suffered. Although there may be some adjustments in how investors and other people approach the purchase of retail and industrial space, concerns about rising interest rates could encourage more people to put their money where they are needed. Simon Kronenfeld, a local realtor, will assist buyers in finding the perfect property for them.
Expect an increase in demand for commercial space.
Simon Kronenfeld and other professionals anticipate that corporations may continue to use a mixture of central work areas and telecommuting. The past year has shown that telecommuting can work just as well from home than traditional settings. Others roles require that you gather in one place in order to maximize efficiency.
Many corporations which relied heavily upon rented space were able to let leases expire within one year. It was not necessary to have office space when people were working from home. The pandemic has receded and businesses will be looking to find new space to house the remaining members of their workforce.
The Reopening of Small Businesses by Owners in New Spaces
In the next year, big business will not be the only company looking for new premises. Simon Kronenfeld, a professional in the field of business management has already seen a shift by smaller-business owners to rethink how they use their space. This may involve renovations in some cases. Sometimes, that may be a renovation or moving into new space.
The motivation behind the move It may not be about square footage for some. Simon Kronenfeld says that businesses don’t necessarily need large spaces and will look to smaller locations that suit their requirements. Location may also be a factor; situating a small business so that it’s more conveniently located for a larger share of the customer base could mean an increase in net profits.
Renovations to Commercial Spaces could be the rage of 2021
What will happen to the larger commercial space? Simon Kronenfeld and other real estate professionals believe that renovation could be the solution. Businesses with the same interests may be able to move into larger areas by converting them to smaller spaces.
Think about how it could work out for a manufacturer that has less clerical space but still maintains most of its production floor. The space that’s now freed for other purposes could be renovated to house one of the manufacturer’s main suppliers. The proximity of the manufacturer and its resulting transportation cost savings are both for the benefit of both parties.
There is more demand for commercial space in less populated areas.
The increasing number of people working remotely could lead to a greater demand for commercial space outside the normal norm. Simon Kronenfeld noted that those who used to pass multiple commercial space on their commute to work were less likely to pull over and buy anything they wanted. The commute is eliminated when you work from home. This could lead to some stores and commercial spaces disappearing.
This may lead to an increase in demand for commercial space that is closer to where telecommuters reside. It’s much more convenient to pop out and travel five minutes to do some shopping than having to drive for a half-hour each way. Simon Kronenfeld believes that this may lead to more restaurants and shops opening up in places where it is easier for them.
Remember that Simon Kronenfeld and other real estate professionals are open to receiving new information. Unexpected market trends can change the dynamics of how buyers, investors and builders conduct their business. Keep up to date on the latest data about what’s happening, and never hesitate to restructure your planning if that new data indicates that doing so would improve your circumstances.
Entrepreneurship Life published the article Simon Kronenfeld: Commercial Real Estate Forecasts.