As we’ve been highlighting the commercial real estate market is seeing a lot of changes in 2020. With many people moving from densely populated coastal cities like Philadelphia and New York to more rural and urban areas, the effect on commercial real estate is just beginning.
As we continue to see more hotels and retail properties go into special servicing, savvy off-market real estate investors are going to have to look at trends to determine where to make a good investment.
Jessica Fiur, Managing Editor of Commercial Property Executive has an interesting article, Post-COVID-19, Could This Be the Next Hot CRE Asset?, with a potential good commercial real estate investment asset class, parking garages. She highlights some potential reasons why.
But could COVID-19 cause a resurgence in driving? As people go back into the office, safety and cleanliness will be at the forefront of everyone’s minds.
Fewer people may feel comfortable taking public transportation going forward. And don’t even mention Ubers or cabs or other shared driving services. Who knows who was in the car before you, and if the driver wiped everything down!
Cars might be the answer. And if so, could parking structures be the new, hot CRE asset class?
It’s already being predicted that more people will drive post-COVID-19, particularly when it comes to vacations (after all, what is a plane if not a big, flying bus?).
And people who can no longer work from home will still have to get there.
Suburban offices have to consider parking structures anyway. And the novel Coronavirus might have investors considering suburban offices going forward, at least for the near future. Even coworking spaces, which might have had some troubles at the beginning of the pandemic, might do well in the suburbs.
As she points out the move from dense urban areas to the less crowded suburbs could force suburban office building owners to consider new parking arrangements and potentially in cities, we could see more investment in parking garages.