As the global pandemic of COVID-19 is affecting millions of lives, many also are worried about the depleting economies that would be hitting next. The viral disease has already done severe damages to the health of the masses, but as per the industry experts and thought leaders, a blow of financial instability and insecurity will be major devastation not many of us can bear the brunt of.
One of the major industry segment which is speculated to be worse affected during the oncoming recession is the commercial real estate. As social distancing is becoming the new normal and WFH (work from home) is getting easier; the non-usage of office space is considered very certain. Companies will not only have to bear the rental and maintenance costs, but also the salaries of their employees. This could result in further downsizing of the organizational structures. The same has been opinionated by industry veterans like Mr Larry Fink, BlackRock Inc. Chief Executive Officer, who further thinks that the requirement of office spaces will shrink considerably. This could strongly affect commercial property for lease in Gurgaon, Delhi, Noida and other major cities, especially in the coming few months.
On the flip side, however, many experts also believe that this downfall in the office space market will not affect other segments of the CRE industry like the retail spaces, F&B outlets and warehousing. Even the residential housing sector seems to be doing fine. While people may not be that keen to step out of their homes and carry their normal routine, brands and business owners are considering to apply changes in their layouts to make space for the behavioural changes. These changes include the use of sanitizers before and after using a common product, mandatory use of gloves by the retail staff, the spacing between the seating and serving areas, and area for guests and customers on the wait-list with seating arrangements, among others.
For industries looking for a warehouse for rent, things can get a little competitive. As by the effect of the lockdown not many e-commerce companies were operational. Post lockdown, when the local authorities and state governments will allow them to restart their businesses, operational teams would be seeing an urgent requirement of a big or small warehouse for rent near their offices for easy handling of existing and newer batch of their products. Even logistics driven businesses will be on a lookout for warehouses near to the market place for faster delivery. On a similar line, cold storage warehouse for rent will have a higher demand because of the reopening of F&B, meat industries, and groceries delivery partners.
People looking forward to commercial real estate investments should keep a good check on the changing landscape of the market. For many, the year 2020 was marked for buying a new property. As the top builders will resume their construction work post-COVID-19, prospects of finalizing a fully-furnished residential apartment or renting a retail space would become clearer. For now, we can only hope for better things to come and see what the commercial property market has in-store for us.
If you’re planning to rent a warehouse or looking ahead to invest in commercial property, go ahead and give us a call or send us an email.