It is no surprise that the increase in remote workers in recent months impacts the market for commercial real estate. This is true of the Boston area as well as most other regions of the U.S.
Investors wonder if this is a temporary situation or if it will remain an issue for many years.
A look at the Boston market
Boston Magazine reports that while residential real estate remains strong, the commercial real estate sector shows signs of trouble. While some analysts predict retail space will do well soon, the outlook for office space appears shaky.
Another factor with a remote workforce is a reduced need for a presence in the Boston metropolitan area. With a potential increase in employees who can work from home, companies might relocate to new areas, thus reducing the demand for office space in Boston.
Still, many professionals believe office space will never completely go out of style. Existing commercial real estate buildings for sale could also see buyers looking to use the space in creative ways. These buyers could reduce the overall impact on the value of commercial real estate.
A glance at the wider market
Forbes suggests that innovations will play an important role for commercial real estate investors and professionals in 2021 and beyond. Companies that deal in commercial real estate will need to engage in more research in the following areas:
- The increase of efficiency for office space
- The behavioral trends of workers
- The presence of monetary vulnerabilities
- The establishment of better security
All of this goes to show that the commercial real estate market is subject to change in many ways. Companies that remain vigilant and make smart decisions will continue to find opportunities.