The CRE market in Denver, may be forever changed by the pandemic of 2020. We have watched helplessly as restaurants, retailers and small businesses have closed their doors. Others, that have been given the option, have focused on a work from home situation. CRE now has a different face in regards to standards, square footage per person and density. The need is for more open areas, offices less crowded. E-commerce has accelerated four to six years ahead of what was expected and is here to stay but that shift will trigger increased demand for industrial spaces.
Lately, there has been a desire to move back into office space, reengineered and reworked to protect the safety of employees. These behavioral changes will definitely change the CRE market, but the full extent has not been realized as of yet.
Stay Informed and Up To Date
If you presently own commercial real estate or are thinking about it, focus on the future. New manners of usage is forthcoming. Deals have a different look and feel to them. Closings are being extended, or on hold. Most investors are just getting comfortable with the new projections and opportunities. Of course, opportunist investments are always an option. Sellers might offer a discount, but CRE is a long-term game that will outlive these uncertain times. Property incomes will stabilize and come around again.
We now agree that a new era of growth is on the horizon for industrial and commercial property. The use of assets and land will be evolving during the next five years. Even though we’ve taken a giant step backwards everyone is rebuilding their perspectives on the new data collected. By the summer of 2020 tenants were already reaching out for additional space, maybe because they’re carrying much more inventory. That is definitely a trend that happened unexpectedly.
The CRE Future For Denver is Here
As our thinking evolves about asset strategies, potential risks, and business goals we remain surprised by the resiliency of the industrial sector and how it performed from an occupation perspective and a rent-collection perspective. The CRE industry is presently shifting to a “just in case” mode in the event of a second wave of pandemic. So that information gleaned is providing insurance for the future market and helping to outline lucrative strategies as a safety net. We’ve learned how quickly and decisively, overnight really, the world was uprooted. But that’s OK when you are able to be flexible. There are many long-term benefits of commercial real estate investments during these times.
If you are looking for a commercial real estate broker, Katchen Company is on your side with an amazing track record and experience in the Denver area. Each and every broker has an in-depth understanding of the CRE market and will help navigate investors through it during these times. Whether you’re a seasoned CRE investor or not, we have extensive experience in the CRE market. We have a solid track record at being creative with new solutions to old problems. This has made Katchen Company the leader in commercial real estate, across all market segments that includes retail, industrial, and office.