The residential real estate business is booming right now, and this includes 1-4 unit multifamily properties as well as larger 5+ unit multifamilies. Single family homes have seen their heyday recently with little inventory and plenty of competition. While there have always been plenty of individuals looking to invest in multis, this number has recently increased, especially on smaller multifamily properties. With people being out of work due to layoffs and furloughs, many are going to look to offload their large mortgages and get into something more affordable.
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.
Not surprisingly retailers are a litttttle leery signing new leases in the midst of a pandemic. Even with businesses beginning to open up across the country in May and June, there are still too many unknowns out there.
Among those questions are:
Could this be the jab to the throat brick-and-mortar retail was trying to avoid? Back in February forecasts were predicting that U.S. retail would see moderate growth somewhere around 2.8% in 2020. This was PC (pre-COVID), of course. Now, the newest available data is showing that U.S. retail sales will most likely decline 10.5% this year, and those getting hit the hardest will be brick-and-mortar retail stores.
Market Mondays are backkkk and this week we're looking at offices offices and how recent events have affected how (and where) people work.
Even with a strong Holiday season at the end of 2019, brick and mortar stores have been struggling to increase in-store sales and compete with online giants. Coming into 2020, experts anticipated that there were going to be a number of store closings in addition to the previously announced upcoming closings.
In this installment of Market Monday, we're looking at industrial properties in New Hampshire through the beginning of 2020 and how they may fair through the first half of the year.
Multi Family Market Monday update!
While the multi family market remains strong into 2020, February did see a little dip in average selling price AND the number of 4+units sold.