10 Things We Observe and Project for CREJuly 29, 2020 • Author: Howard Taylor
Although climbing in occupancy, hotels still have a long way to go before breaking even. We envision a good deal of CAPEX to address pandemic health of hotel guests.
Retail centers will continue to lose ground to online retailers, as the pandemic has many folks shopping online.
3. Student Housing
Once the darling of the industry, Student Housing will continue to slide. With distance learning becoming a more normal method of education, Colleges and Universities will start repurposing some of their brick and mortar.
4. Regional Malls
Having a hard time competing, malls will continue the trends of entertainment venues while some will also see a repurposing to medical.
Once the commuters nightmare, office work will shrink substantially. Many businesses have already started the permanent transition, allowing employees a wide berth working from home.
Gyms, Bowling Alleys, Movie Theatres and the like will suffer long-term effects of social distancing. CAPEX expenses for keeping customers safe will be substantial.
Apartments, Condos and single-family homes will feature more work from home space.
Campgrounds and RV Parks will become significantly more popular than ever, with folks appreciating the space around them.
Brick and mortar bank branches will continue being sold by banks and leased back, with excess space rented to outside tenants.
Projects may see a shift in mix as segments of the mixed-use property vacate, and a more residential component expands.