How Will Commercial Real Estate Change This Year and Beyond?
Adopting A New Normal In Florida Commercial Real Estate
With everything that 2020 has thrown at us, almost every industry has been negatively impacted. Unfortunately, the commercial real estate sector is no exception. As multiple sectors have had to adapt to a “new normal,” there’s no question that we’ve found some solutions that may continue to work well past this year. It’s likely that we’ll see some big changes in the commercial real estate industry in the near future, including these trends.
- Faster Communication
Communication is vital in the commercial real estate industry, and by using the latest technologies, tenants and management can talk much more quickly and efficiently. The use of AI leasing assistants can help answer questions instantly, and two-way text features allow for quicker conversations and greater transparency with tenant requests.
- Greater Lender Flexibility
Now that lenders are working to get back on their feet, we’re likely to see innovative and flexible structures as they try to find solutions for themselves and their borrowers. We may see practices like originating subordinate debt, providing convertible equity, or splitting loans into multiple risk tranches.
- Efficient Spaces
Particularly when it comes to office spaces, efficiency is becoming more of an emphasis. The new generation is dedicated to time management and sustainability, so it would follow that office spaces would need to adapt to meet these needs. While we may see more technology being used, it’s also important to maintain a human element.
- Lower Rental Costs
Working From Home
We’re starting to realize that more people can work from home, so it’s probable that the cost of office spaces will decrease. Offices in downtown spaces will need to be especially adaptable and innovative in order to keep tenants coming in, and the need to focus on the local economy will become more and more apparent.
Contact Us For Help Today
As the whole world works to return to some semblance of normal, it might be time to pursue your dream of owning commercial real estate. If you do decide to take the big leap, be sure to enlist a commercial real estate lawyer on your side. Mark Schecter is a trusted South Florida commercial real estate lawyer who has worked in the industry for decades. He can help you find the right space and secure it with terms that work for you. Contact Schecter Law to speak with Mark and to get started!