Is your business in the Greater Cleveland area feeling the effects of COVID-19? The future of commercial real estate is uncertain. The Covid-19 pandemic has had a significant impact on the economy, but how will it affect businesses in the long run? Some experts predict that lease prices will fall as there are more vacancies than renters, but others think landlords may increase their rates to make up for losses in other industries. Business owners need to stay informed about the current state of affairs so they can plan accordingly.
According to Cleveland.com, commercial real estate in Downtown Cleveland remained steady for office space and apartment buildings. Cleveland’s commercial real estate stayed relatively stable this past quarter as occupancy levels of downtown offices and apartment buildings were maintained at about 80% or higher.
Cleveland’s unemployment rate declined from 7.3% in January 2021 to 4.8% in May 2021. A 2.5% decrease illustrates new job creation through expansion projects like Sherwin Williams and growth within existing companies will continue to add jobs in Northeast Ohio.
The CRE Silver Lining
Overall, the pandemic has adversely affected commercial real estate. However, it has also generated innovative possibilities for the CRE market this year, including affordable rental prices, efficient online communication, and sending in forms and payments with ease electronically.
As the commercial real estate market continues to recover from the effects of Covid-19, investors should invest in stable sectors like e-commerce warehouses, self-storage facilities, and grocery stores. Even after the pandemic, these spaces are likely to continue to flourish.
Additionally, office vacancies in high-traffic areas make this the perfect time for commercial owners looking to expand. Office space is still in demand, but companies’ needs have advanced with different types of amenities. The demand now is for indoor air quality, touchless technologies, and appropriate distancing in office spaces.
For those looking to invest in commercial real estate for the future, it’s essential to consider the after-effects of how Covid-19 will impact your portfolio. The commercial real estate industry has risen to the challenge, creating a variety of positive changes in response to Covid-19.
With continued observation and insight, we can meet the needs of today while looking forward to the future. What are some of the best investment options Northeast Ohio investors should be considering? We can help you find out! Contact us today, and we’ll walk through a plan that makes sense for you.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.