How COVID-19 is Impacting South Florida’s Office Market
Impact Of Covid-19
The impact of the COVID-19 pandemic cannot be overstated. We’ve seen changes to every aspect of our society, and the commercial real estate industry is no different. While the luxury housing market is doing surprisingly well, the office market has not been as lucky. There have been some interesting developments, but as a whole, the commercial real estate market has seen a steady decline since the start of the outbreak.
Distress in the Industry
So far in 2020, the commercial real estate industry for South Florida peaked in January and has seen a decline every month since. The total number of monthly sales has decreased considerably, with April taking a particularly hard blow. While stimulus aids are helping to keep some rents afloat, there aren’t many new properties being bought or leased at this time.
Many lease transactions are being paused, and those who were looking to buy are now starting to question valuations. One of the most impacted operations are co-working spaces. Thanks to social distancing requirements, many of these spaces have had to significantly decrease their capacity or shut down altogether.
A Surprising Increase
While the commercial real estate market is taking a hit right now, there may be a rising market for out-of-state buyers. Some property owners are seeing interest from those in cities like New York, Los Angeles, and Chicago. Business owners in these cities are looking to set up satellite offices in South Florida in an attempt to give their workers more flexibility and space.
A Bright Future?
Some are predicting that the South Florida commercial real estate market will see a boom after the COVID-19 pandemic begins to level out. If business owners are unable to pay their rents and have to vacate their spaces, future buyers may be able to grab these coveted offices at a fraction of the price. Many remain optimistic about the future of the industry, but it’s a matter of time before the market will prove itself.
Get Help Today
If you’re looking to purchase commercial real estate now or at some point after COVID-19, be sure to get a commercial real estate attorney. These professionals can help you navigate the complicated work of property purchasing. Mark Schecter is one of the top South Florida commercial real estate lawyers and can help you find and purchase your ideal business space. Contact Mark today to learn more.