U.S real estate is poised for drastic changes as more people get the Coronavirus vaccine. Commercial real estate firm NAI Alliance is already predicting a surge in demand for retail, office space, and multi-family homes going forward.
Real Estate Changes
While the retail sector has felt the biggest brunt of the pandemic, most retail businesses have adjusted their health guidelines expected to fuel a sense of normalcy going forward. As more people get vaccinated, traffic to retail outlets should increase, expected to be a big boost to the sector.
Demand in the housing market should also remain high with active inventory declining by more than 30% in Nevada. The state is experiencing strong demand for industrial properties as well as companies look to set base away from other states such as California. According to NAI Nevada, the real estate sector could see a big boom as more companies see promise in the state.
Demand For Office Space
While COVID-19 delivered the largest work-from-home experiment sentiments are increasingly changing. One year into the pandemic many people are longing for the office a development expected to fuel strong demand for office space.
For instance tech workers are showing a greater desire to return to the office at 69% with young professionals at 74% also longing to work from the office instead of home. Companies have already started encouraging a return to the workplace is it at a limited capacity.
Amid a return to workplaces, a new trend is slowly emerging whereby companies are looking to make employees comfortable as possible. Safer working conditions made up of partitions between distance desks and single employee offices is a top priority.
Demand for more office space is poised to edge higher as employers seek to guarantee employees of their security while working. Tenants have a significant advantage as landlords are faced with ample unoccupied space that needs to be filled.
Brookfield Asset Management $5.9 Billion Deal
Separately, Brookfield Asset Management has confirmed plans to privatize the $10 billion listed fund Brookfield Property Partners in a deal worth $5.9 billion. The offer presents a perfect opportunity for BPY shareholders to monetize their units in cash at a premium of as much as 8.9%
The Toronto-based company has made an offer to acquire all the limited partnership units it does not already own. It is willing to pay $16.50 for each unit.
With the acquisition, the company will gain access to a $10 billion portfolio made up of the office, retail multifamily, and industrial property. It will also gain access to student housing, manufactured housing assets, and self-storage. Likewise, Brookfield Asset Management is poised to strengthen its credentials as a premier real estate company with $88 billion in total assets.
Coldwell Bank River Consolidation
In addition, Coldwell Bank River Valley Realtors is poised to become the largest real estate company in Tomah after announcing plans to merge with Century 21 Gold Award Homes. The merger will result in a combined company with established offices in Tomah and Monroe’s counties. Established in 2007, Coldwell Banker River Valley Realtors serves residential and commercial real estate buyers. The company also has a Wisconsin office in Winona and Rochester.