COVID is Creating Certain Opportunities for Smart Investors

Since March of 2020 when businesses and the economy have had to shift due to COVID-19, commercial real estate has been in freefall. 
Because of forced business closures and certain strict regulations that make it difficult to run a business, many small businesses have been unable to afford their lease payments. Some businesses have no choice but to shift to remote working, where employees are no longer coming into the expensive office the company rents, and are instead working from their homes. This leaves many offices empty while the business owner must make tough decisions about the space, whether to keep paying the rent and high overhead costs or ditch the office. Losing your office space is a big risk, but so is spending lots of money on an office that is not being used like it used to. 

In apartment buildings big and small, residential tenants who have been out of work or unemployed with no hope of returning have missed nights of sleep trying to figure out how to keep up with their rent payments.  Unemployment numbers keep rising as the benefits are starting to fall off.

Commercial property owners are faced with a deluge of cash flow problems and some commercial assets seem more like a liability.  Some kinds of commercial properties may vanish forever. 

 But as the economy shifts, smart investors are looking to a post-COVID world and the possible silver lining of investing. With any challenge or downturn, there are sure to be opportunities that the wise can spot in the distant future. It’s all about looking at who is thriving during these trying times, and able to get ahead by accommodating the demand. Think about how many more people are shopping online for regular goods, such as groceries, toilet paper, and other home items and necessities. 

Last-mile warehousing is a kind of industrial real estate that is a warehouse where a package lands before arriving at the consumer’s doorstep or porch. E-commerce has exploded with its ease of delivery, no contact, and convenience. During COVID, even the most diligent of store buyers have changed to e-commerce. Smart investors may be looking for commercial property Denver opportunities to get in on the e-commerce boom and make smart investments in commercial properties such as last-mile warehouse facilities.

Similarly, investors who are interested in the technology may be looking towards technologies such as contact tracing and other technologies that align with the current health crisis we’re facing. From contact tracing to technologies that help businesses and commercial properties scan people who are entering to see if they have a higher than average temperature, it’s likely businesses who are creating products and services that align with what we need in a post-COVID world are looking in the right direction.