Interesting discussion today about the future in commercial real estate. Kevin rightfully pointed out that for any large building/event center to continue they are going to have to spend $$$$$$ to improve the ventilation systems, perhaps even installing equipment that does not readily exist today. So the commercial real estate market and of course REIT's, are going to take a very very long time to recover from the effects of the virus. The other, and perhaps more important thing he said was people aren't going to go back to offices. Companies have found savings (7%+) by having all their employees work remotely, something the companies would never have tried without the effects of the virus. This is the Future that Alvin Toffler predicted in "Future Shock". https://en.wikipedia.org/wiki/Future_Shock O'leary inter view here; https://www.msn.com/en-us/news/vide...anged-by-coronavirus-kevin-oleary/vp-BB139Hyg
I remember reading futureshock way back in the late 80s I'm surprised that the predictions have taken so long come around. I'd have to skim through it again to remember some of the other predictions he made
Commercial real estate will probably never fully recover. Lots of businesses have found out just how much work can get do e by employees at hame and are now wondering do we really need to be renting all this space. Employees are thinking this could be ok just know don't have to put up with office bs and now an live almost anywhere I want and still work for the same company.
My personal experience, I'm doing less than half the work I normally do. If anything in general bosses will discover that their employees aren't as productive as once thought and will eliminate jobs as a result. Some Middle management positions might be exposed as useless too
I agree, the larger the company, the more they will utilize remote office work, and this pandemic has provided a catalyst for it.
I think what will happen is future leases will have clauses for Acts of God or whatever you want to call this. Nursing homes are the sector that won't be the same.
