Commercial real estate saw a decrease in recent years due to numerous factors like lifestyle changes and increases in remote work opportunities.
Retail vacancies may continue to decline in the near future, as well. So what does that mean for people like you who may want to take a look at purchasing a commercial property?
Updating a commercial space
Even in today’s economy, numerous ways of utilizing commercial properties and spaces exist. For example, it is possible to turn vacant stores in a shopping mall into order fulfillment or warehouse spaces.
Many real estate leaders also want potential purchasers of commercial spaces to keep an eye on the health and safety of customers. Tenant health concerns will likely dictate many trends in property sales and vacancies moving forward.
For example, the CDC discusses issues with ventilation, which cause problems in many properties. Replacing the HVAC system and updating other ventilation systems could help with the spread of viral particles, which may alleviate some of the health concerns held by potential tenants.
Changing space allocation
In addition, due to the large number of people shifting to working from home or remotely, larger office spaces will likely see a continued downturn in purchase and rent. Hybrid workforces may still benefit from smaller spaces, though. You could use these smaller spaces for things like training sessions and so on.
Thus, dividing up larger spaces into smaller ones and updating the technology with health and safety in mind could potentially net more tenants even in the current downturn of renting.