Summer has come and gone, and it sure seems like it went fast. We recorded the wettest June and July here in the Northeast, while our friends in the west are experiencing record droughts, heat and forest fires. With COVID-19 on the rise again thanks to the delta variant, things are just as crazy, if not more so, now. With back-to-school mask policies varying greatly between states, counties and towns and the troop withdrawal from Afghanistan, political division across the country seems to be at a peak.
As we prepared to close out 2020, I’m sure many of you reading this thought to yourselves, “Thank goodness, let’s get 2020 over with and move on!” I can’t say that I blame you. It’s understandable that everyone has a different perspective. People have been impacted differently, and perhaps still have feelings of unease surrounding the pandemic, the economy and most importantly family and loved ones.
So many terms are used for this new wave of technology that we're on the precipice of...we have Fintech, Proptech, Insurtech, Wealthtech, Regrech, Legaltech, Femtech, Foodtech and the list goes on.
As we fall into a new month and COVID numbers continue to be on the rise in NH yet again, surprising amounts of leases were signed last month. Perhaps people are trying to get back to a sense of normalcy in the office, and perhaps people are down - or up - sizing their offices based on their needs. Whatever it might be, 39 lease transactions in a single month is something that hasn't been reported since February 2019.
The industrial market is kind of in a strange place right now. It is faring better than the majority of the commercial real estate sectors, which is certinaly a positive. It seems that perhaps the sudden increase in the amount of e-commerce and online ordering has helped the industrial sector find its footing again.
The annoyance with these emails is even further exacerbated by the fact that it is VERY possible that your household was effected by all of the shutdowns due to COVID-19. According to the Fed 20 percent of all employed people were laid off or furloughed in March along with an additional 6% who were working reduced hours or on forced leave without pay.
July showed some promising numbers when we took a look at our monthly report!
The number of lease transactions are (WAY) up from last month. On top of lease transactions being up, we also saw that leases were being signed at 107% of the asking lease rate which is good news for landlords!
There's little doubt that small businesses have been some of the hardest hit through this COVID-19 pandemic. We might not know what it is going to look like, but there IS a "normal" in the future. Many businesses are barely staying afloat, forget thriving, but there are some things businesses can do now to try and be ahead of the curve.
One of the sectors of commercial real estate that seems to be surviving through this pandemic is the industrial sector, despite having to shut down for a period of time.
In June we saw:
• higher list-to-close ratios for sales AND leases
As I began to draft this article, I had to stop and pause for a moment to reflect on how drastically altered the commercial real estate landscape finds itself due to the implications arising from the COVID-19 pandemic.