2020 and the years ahead won't come without difficulties for the commercial real estate market. In the United States, certain Commercial Real Estate sectors may be affected by oversupply. the Urban Land Institute states that construction during the current cycle has been below historical trends, but as the cycle matures, we need to look at whether markets are becoming overbuilt. Oversupply may be around the corner for these Commercial Real Estate Sectors:
The main aim of Opportunity Zones is to encourage long-term investments, especially in low-income rural and urban areas throughout the country, and to boost the economy. An Opportunity Zone is an economically distressed rural or urban community that has been identified by state, local, and federal qualifications.
In these ever changing times, a retail landlord may find that they are stuck with an empty retail space. Recent retail trends, and the impact of closures due to Covid-19 have made it difficult for brick and mortar businesses to stay profitable.
However, there are many retailers who have found ways to adapt to this new environment. Although long-term creditworthy tenants are necessary– short-term tenants are also a good option, particularly in well-located areas.
Mandatory stay-at-home orders have permanently shuttered businesses across Los Angeles. Some restaurateurs who have been waiting to start the next hot spot are seeing the opportunity and are doubling-down amid the health crisis.
According to a Yelp study, Los Angeles had nearly 6,000 businesses close since the stay-at-home mandate from March to July. Businesses have had to dig deep to find creative ways to stay afloat amid the COVID 19 pandemic. Some restaurateurs are seeing the opportunity and have jumped in from the sidelines to open their restaurant. Food bloggers like Kat Hong of The Infatuation sites several new restaurants in the Los Angeles area that look to have some great potential.
