Commercial Real Estate
Coronavirus has had a massive impact on the commercial real estate industry. Tenants who were forced to shut down or greatly reduce their services have lost a large amount of income. This has a negative effect on not only their revenue but also the revenue of their landlords. Rent abatements and deferrals have been put into place for lots of companies to help ease their minds during this time. They can pay less or no rent during this pandemic and work with their landlords to pay it off later, typically in increased rent payments for the remainder of the term of their lease.
Businesses that wanted to expand have now halted their negotiations on new properties because of the uncertainty of what will happen in the future. Many companies have realized they are very capable of working remotely and are looking to downsize their rented space to save money.
All of these factors affect multiple levels of people from the employees to business owners to landlords. Nothing is certain at this time and it will be interesting to see how commercial real estate is affected in the long term because of this pandemic.
Retail and Office Space data is from CoStar Database
Residential Real Estate
Residential real estate has been affected by coronavirus in a number of ways. The amount of homes sold during the months since coronavirus began has decreased. However, the average price of homes has increased during this time.
Coronavirus hit during the peak house listing time. Spring is the most popular time to buy or sell a house, and the number of homes listed during the months of March and April is typically higher than other months. It is apparent that this year the number of homes listed during the “peak months” is less than in years past. It is not as drastic as one might think, but the difference is definitely there.
Buying and renting is not impossible during this time; it is just very different. Home and apartment showings are being conducted via video calls or online tours rather than in person tours to prevent possible exposure to coronavirus. Many homes are being bought “sight unseen,” meaning the buyers sign the contract and own the house without ever seeing it in person or going inside.
New Listings per Month in Georgia
Inventory of Homes per Month in Georgia
Residential data is from Georgia Realtors Monthly Indicators Reports
May data will be released and added next week