Global economies have been significantly affected by the spread of the COVID-19 virus. Many countries went on partial and total lockdowns translating to severe problems for many businesses. The real estate industry was among the hard hit by the pandemic effects, and the quest to find a lasting solution is real. With the unprecedented challenges faced in 2020, real estate professionals had to devise mechanisms that would enable them to survive even after 2020. While many people were encouraged to work from home, commercial real estate businesses had to develop solutions like virtual property showing while changing their centralized offices to remote working environments.
Although the pandemic seems to be subsiding and even the vaccine is produced globally, this deadly virus will impact the industry for months or even years. Notably, as some real estate investors, you must be prepared for the future since nobody knows what is ahead; we only hope for the best. While trying to put the pieces together and get insights from the right team, we asked 14 members of the Forbes Real Estate Council to give their views on industry trends likely to be seen. Here are some of the factors that are driving commercial real estate trends in 2021 and beyond.
Remote Working Utility Bills Management
Working from home has helped many countries contain the spread of the virus. However, these businesses have to weigh the benefits of employees working from home and the cost implication instead of when they are in the central office location. Besides, these companies assess the health, safety, productivity, and the need for their team to work remotely or maintain the central office location that could be dealing with redundant bills.
The Use of Smart Amenities
Internet of Things has proved to be the latest technology interconnecting devices hence enhancing synchronization and automation. The adoption of technology in any business guarantees the best results in business. Although many real estate businesses invested in technology pre-covid-19 days, these technological solutions will continue for months and years as automation becomes a key pillar in service delivery.
Decreased Demand for Commercial Offices
While businesses were adapting to the virtual workforce, some thought this was only a short-lived dream. However, the COVID-19 pandemic does not seem to be ending sooner, and companies opt to have their teamwork from home. The future outlook of office space is uncertain as businesses quickly shift to a virtual workforce due to the reduced overhead costs of owning or leasing office space and the monthly utility bills.