[vc_row][vc_column][vc_single_image image=”854″ img_size=”full” alignment=”center”][vc_raw_html]JTNDZGl2JTIwaWQlM0QlMjJidXp6c3Byb3V0LXBsYXllci04NTMwMjgzJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDc2NyaXB0JTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuYnV6enNwcm91dC5jb20lMkYxNzQwMjc5JTJGODUzMDI4My1jcmUtb3V0bG9vay1jb21pbmctb3V0LW9mLXRoZS1wYW5kZW1pYy5qcyUzRmNvbnRhaW5lcl9pZCUzRGJ1enpzcHJvdXQtcGxheWVyLTg1MzAyODMlMjZwbGF5ZXIlM0RzbWFsbCUyMiUyMHR5cGUlM0QlMjJ0ZXh0JTJGamF2YXNjcmlwdCUyMiUyMGNoYXJzZXQlM0QlMjJ1dGYtOCUyMiUzRSUzQyUyRnNjcmlwdCUzRQ==[/vc_raw_html][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The outlook for CRE is much brighter than what was expected just a year ago as the pandemic was coming to life and wreaking uncertainty. Hotels, in some classes are experiencing significant improvements. Rent collections in retail are exceeding expectations. And, office tenants are heading back to the workplace as CEO’s soften their stance on major office space footprint reductions.
Several factors are contributing to this heightened enthusiasm and rebound. Without a doubt, the federal governments assistance has provided a shot in the CRE arm. Banks have capital to deploy on investments and developments. States are opening and reducing restrictions on travel, therefore allowing for increased business traffic once again.
The pandemic has forced individuals and businesses to adopt a radical, yet efficient way of conducting business. Retail’s online presence exploded spurred on by necessity. Logistics in getting items from producer to consumer was expedited overnight. Industrial has flourished thanks in large part, as already mentioned, to the logistics necessitated by an explosion in productivity in the retail sector.
Office tenants had to learn how to be efficient from their home space. Urban workspaces are slowly filling in as large employers grapple with efficiency, costs, and employee safety. Uniquely, on the other hand, multifamily is likely a beneficiary of lagging single family construction. This is a holdover from the Great Recession. Many would be homeowners have nowhere to go. In many markets, demand is high, and supply is low which is driving home prices out of reach for first-time homebuyers. Also, more people work in urban areas and this tends to be a rental market conducive only to multifamily.
Contact Info
To learn more about how property tax issues can affect your investing strategies, please reach out to Tim Feagans directly at tim.feagans@retcgroup.com.[/vc_column_text][/vc_column][/vc_row]
