COVID and Commercial Properties
COVID has had a significant impact on every aspect of our lives. You can see this in not only the residential property market but the commercial one as well. With many industries making a shift to work from home, the demand for commercial properties has plunged. But as we emerge from lockdown, is that going to change? It’s a difficult question, but let’s consider a few different sectors:
Offices
Even though workers are beginning to trickle back to the office, it seems clear that offices aren’t going to be used in the same way anymore. So while some people will be desperate to get back to the office, most will want to keep some aspects of flexible working in place. Many large companies have indicated that they intend to work on this basis. After all, not offering flexible working may end up being a turnoff for talented employees.
With flexible working, it’s clear there will be less need for office space. We have already seen a trend toward converting office spaces into residential areas. It seems like a safe bet to assume that this may continue.
Static Retail Spaces
With more workers working from home, the high street isn’t going to be the same. Currently, the expectation is that there will be less business during the week, with it shifting to weekends. To deal with this, retailers like John Lewis are looking for ways to divest their commercial properties. Again, we are beginning to see these spaces changing into more residential properties.
With these retail spaces, it may not be as simple as turning them all into homes. Some industry experts are suggesting that large retail spaces may see conversions to mixed-use spaces. As a result, you can expect to see smaller retail spaces mixed in with some residential properties.
Shifting Commercial Trends
With consumers’ needs changing, the retail sector, like many others, is seeing a period of sudden innovation. Savills predicts that there will be a significant rise in the presence and appearance of short term retail outlets. Pop up stores may become much more normal and an integrated part of retail destinations.
COVID served as a warning about the fragility of supply chains. Based on this, industry experts predict that there will be more demand for warehouse space. If businesses can stockpile more of their goods and materials, they will have a larger buffer for future turbulence. In addition, retailers will need more warehouse space as they begin to rely more heavily on delivery style models for their commercial models.
Supporting Your With Property Pivots
Like many other industries, commercial property is in the middle of making a pivot. The value of having flexible spaces is apparent. Commercial landlords may find that taking the time to make their spaces multi-use will allow them the flexibility needed to keep their properties filled with tenants.
COVID and Commercial Property – If you need to change the way your property is used, you will need to get new property assessments. At Assessment Hive, we can help you with that. Why not reach out to us today to see what we can support you with?
