The real estate market has changed. First, as the world became more inclined towards remote work and less travel due to the virus spread, and now, when people are looking to head back to office again.
The real estate market is slowly but steadily bouncing back into the game and adjusting to the new norms.
Long-Term Changes in Real Estate Market
Yes, the real estate market is booming in the present conditions, but the pandemic has left some long-term effects on real estate. Some of these changes are here to stay and are changing the usual market predictions of the real estate business. Here are all the rising shifts in predictions that you need to know to stay ahead of the curve as a property manager. Read the full article to know more in detail.
Office space demands being rethought
The pandemic has shown many offices across the world how they can save on overhead costs with remote work. Worldwide most companies are either giving hybrid work options or complete remote work to their employees. This helps them stop or reduce office space usage, obviously impacting the sale and rent of office spaces. Before the pandemic, most offices remained skeptical of employee performance without a formal office space.
The pandemic forced them into this experiment and has made the real estate business suffer. This does not mean the demand for office spaces has become zero, and it simply means workers and companies are now looking for different types of office spaces. Demand for co-working spaces, office spaces with open areas, enough space for leisure activities is on the rise. As property managers, you need to upgrade your rental office spaces to stay in the game.
To sum up this change, industry veteran David Gooderham, Global account director, WSP UK, said, “ To justify its existence, the office will have to become a destination with a purpose.”
Commercial property post-covid
Commercial real estate properties like hotels and restaurants saw a major decline in sales due to the pandemic. The sale and rents for these have gone down. But everything in commercial property was not so grim; healthcare facilities and industries factories saw a rise. Property managers should know how to reassign their resources and rethink their strategy to become a part of this market.
Shopping centers are changing
The rise of e-commerce due to lack of commute has largely affected shopping complexes. In-store sales have gone down considerably. But, warehouse demand has increased when demand for shopping complex spaces decreased. Even when Walmart has in-store buying options they increased their 4 warehouses to 11 in the two years of the pandemic. This is largely because of the rise in online sales of most brands.
Research believes more than 1,000 retail shopping spaces will close down across America in the next 5 years. This is why property managers need to understand the real estate demand for commerce has shifted to warehouses instead of open shop spaces.
Rise of multifamily real estate properties
Multifamilies were always in demand due to the extra benefits they came with. Post-pandemic, when most people stay home and work, these amenities have become major attractions for sale and renting houses. Condo sales and single home demands are decreasing due to the lack of these facilities that people can enjoy while working from their own homes.
Are you feeling the rise in demand for multifamily homes? Is it becoming increasingly difficult to manage all your properties and tenants manually? As a property manager, you need to rethink your strategy and leadership plans to leverage this market shift and increase sales. The right technology selection in property management is essential to work this through.
The Assetsoft team is here to integrate a software like Yardi and MRI to streamline your property management system. Your system will get automated when you start using this software, and you can start focusing on sales while we take care of the heavy back office management work.
Increase in residential real estate investors
The National Association of Realtors (NAR) believe that median home sale prices in the US increased by 17.2% in March 2021. That was a historic high for the real estate business world. What motivated this change even when affordable housing is a concern? People want a comfortable space to work in since they mostly work from home. Real estate investors have now realised that this change is here to stay, and they have pumped up their investments to tap into this market.
Affordable housing remains a constant issue
The real estate market says that a majority of the population is shifting to suburbs and rural areas to find suitable housing. They are working from home and travelling to work, and staying close to work is no longer a priority for them; instead, good housing is a concern. Does this mean housing in the city for those in need has become affordable? Certainly not. PWC Research says nearly half of the US population (49%) believe that their respective communities do not have affordable housing facilities for them.
This is a problem that has been constant for quite some time, but research believes the affordability rate has gone down even more due to the pandemic.
Yes, the real estate market is booming in the present conditions, but the pandemic has left some long-term effects on real estate. Some of these changes are here to stay and are changing the usual market predictions of the real estate business. Here are all the rising shifts in predictions that you need to know to stay ahead of the curve as a property manager. Read the full article to know more in detail.
Office space demands being rethought
The pandemic has shown many offices across the world how they can save on overhead costs with remote work. Worldwide most companies are either giving hybrid work options or complete remote work to their employees. This helps them stop or reduce office space usage, obviously impacting the sale and rent of office spaces. Before the pandemic, most offices remained skeptical of employee performance without a formal office space.
The pandemic forced them into this experiment and has made the real estate business suffer. This does not mean the demand for office spaces has become zero, and it simply means workers and companies are now looking for different types of office spaces. Demand for co-working spaces, office spaces with open areas, enough space for leisure activities is on the rise. As property managers, you need to upgrade your rental office spaces to stay in the game.
To sum up this change, industry veteran David Gooderham, Global account director, WSP UK, said, “ To justify its existence, the office will have to become a destination with a purpose.”
Commercial property post-covid
Commercial real estate properties like hotels and restaurants saw a major decline in sales due to the pandemic. The sale and rents for these have gone down. But everything in commercial property was not so grim; healthcare facilities and industries factories saw a rise. Property managers should know how to reassign their resources and rethink their strategy to become a part of this market.
Shopping centers are changing
The rise of e-commerce due to lack of commute has largely affected shopping complexes. In-store sales have gone down considerably. But, warehouse demand has increased when demand for shopping complex spaces decreased. Even when Walmart has in-store buying options they increased their 4 warehouses to 11 in the two years of the pandemic. This is largely because of the rise in online sales of most brands.
Research believes more than 1,000 retail shopping spaces will close down across America in the next 5 years. This is why property managers need to understand the real estate demand for commerce has shifted to warehouses instead of open shop spaces.
Rise of multifamily real estate properties
Multifamilies were always in demand due to the extra benefits they came with. Post-pandemic, when most people stay home and work, these amenities have become major attractions for sale and renting houses. Condo sales and single home demands are decreasing due to the lack of these facilities that people can enjoy while working from their own homes.
Are you feeling the rise in demand for multifamily homes? Is it becoming increasingly difficult to manage all your properties and tenants manually? As a property manager, you need to rethink your strategy and leadership plans to leverage this market shift and increase sales. The right technology selection in property management is essential to work this through.
The Assetsoft team is here to integrate a software like Yardi and MRI to streamline your property management system. Your system will get automated when you start using this software, and you can start focusing on sales while we take care of the heavy back office management work.
Increase in residential real estate investors
The National Association of Realtors (NAR) believe that median home sale prices in the US increased by 17.2% in March 2021. That was a historic high for the real estate business world. What motivated this change even when affordable housing is a concern? People want a comfortable space to work in since they mostly work from home. Real estate investors have now realised that this change is here to stay, and they have pumped up their investments to tap into this market.
Affordable housing remains a constant issue
The real estate market says that a majority of the population is shifting to suburbs and rural areas to find suitable housing. They are working from home and travelling to work, and staying close to work is no longer a priority for them; instead, good housing is a concern. Does this mean housing in the city for those in need has become affordable? Certainly not. PWC Research says nearly half of the US population (49%) believe that their respective communities do not have affordable housing facilities for them.
This is a problem that has been constant for quite some time, but research believes the affordability rate has gone down even more due to the pandemic.
Property Management Made Easy for Property Managers
Multiple major changes have been looming over the real estate market. But most of these changes are here to stay for a long time. Property managers, owners, and real estate agents need to up their strategy and leadership to beat the pandemic blues. The correct project management processes and technology usage will get you a positive impact. But does this sound all too complicated? The Assetsoft team is here to help. We do it all from property management to asset management and even tedious work like back office accounting. Our team of industry experts and top-notch software like Yardi and MRI can smoothen the process for you.
Get on-call with us to know how you can integrate this software into your system for a better post-pandemic business.