With 2020 behind us and new hopes of being at the tail-end of COVID-19, this year is projected to be a year of recovery for many sectors of Commercial Real Estate. Now how fast and at what point this year we start to turn that corner, will be contingent on our speed of progression back to normalcy pre-COVID. So what areas are said to be hot this year?? Glad you asked!
     Multifamily and Mixed Use(business on the bottom level with residences above it) properties will continue to be a hot commodity! Now more than ever, there is a demand for homes in communities that include amenities in them such as building/ground/land maintenance, bike/hike trails, grocery stores, restaurants, sports, salons, and daycare center. Two popular communities like this, that allow buyers to live an active lifestyle and easy exposure to outdoors, are Village of Five Points and Paynters Mill. They allow for minimal travel time to get to necessities and appeal to those who are looking for a vacation home or to use the property for rental purposes. Some buyers, though, are waiting altogether before purchasing homes due to rising sales prices, cost of new construction and high down payment amounts (despite low interest rates still trending). This is making apartment-style living for the area a big discussion amongst developers. Investors can see higher profits on multifamily dwellings and always keep these on their radar. If you are a developer looking for commercial representation, Coldwell Banker Resort Realty and The Julie Gritton Team are here and ready to assist you.
     Retail and Industrial has held on despite everything the past year. Retail has adapted to the new restrictions and laws placed, due to the pandemic, by offering home deliveries and curbside pick-ups. This has allowed businesses and store fronts to still bring in revenue and operate more as warehouse hubs. This had led to some believing, this will be the new norm as more rely on online ordering and delivery services to do the shopping for them. Industrial has managed to maintain. Some by changing the product they were manufacturing to an item that has been in high demand over the past year. As the year progresses with recovery, these two will once again be off and running.
     Hotel, Special Purpose and Office some say were hit the hardest and will take longer to recover. As restrictions lift, hotels will be able to allow full occupancy and generate full revenue potential. Special Purpose with theaters, amusement parks and churches will be able to allow max capacity. Offices will again, allow workers back at their workstations. Several companies and businesses though are strongly re-evaluating in-office workstations VS maintaining an at-home workforce. Some companies are allowing their staff to permanently maintain remote work arrangements, this is in part due to costs saved on using less utilities, supplies, rent and maintenance. These sectors of commercial real estate we will have to keep a close eye on throughout the year, because a great deal of their success relies on when a new normal starts to return.
     So, the gist of it all… Multifamily and Mixed use will continue to be in high demand. Retail and Industrial will slowly roar back to life and the other’s following suit behind. Sussex County has always been an up-and-coming commercial hot spot and will soon be back in full swing. Now is the time to start to discuss your investment and commercial goals. Book your virtual appointment with one of our commercial agents now, so we can help you navigate through the local commercial market.