Although the coronavirus has temporarily changed the way we work and live, it will have permanent impact on even the most common ways we operate on a daily basis.
One of the more prominent changes it may have in real estate could be the fall of coworking spaces. These workspaces were built to foster collaboration and social interactions, but are now hanging in limbo due to the outbreak.
Additionally, with millions moving to work-from-home arrangements, workers making this transition for the first time are having productivity issues due to juggling family and work responsibilities. Since schools and daycare facilities are closed, many are craving the ability to be back in an office once this is all over. This could be a good thing for building owners.
The Federal Reserve’s response to support the economy is to double what it was during the global financial crisis of 2008 by purchasing bonds and debt securities in large quantities, including commercial mortgage-backed securities.
This likely means that the Federal money will push up asset prices which should lead to competition among investors for desirable real estate.
