It was hard to know a month ago, when we closed our physical offices, what would happen to our sales. We aren't saying that there isn't a big dip, but it seems to be mostly from the lack of listings, in some categories. That is, fewer listings are coming onto the market, and therefore there is less inventory to sell. When properties do get listed, they get looked at online, and they get seen in person, and they sell. That's not always true, but it is notable.
One reason is that we've known for a while that many businesses were short of space, but not pulling the trigger on more. Now, some of those decision makers have time to look, to evaluate, and to buy. We have seen that in sectors unaffected by the pandemic. In the case of industries at the forefront of the current situation, they can be growing rapidly. Doesn't everyone wish that Zoom were based in Connecticut?
Another contributing factor is the knowledge that some of this change is probably permanent. Not only will more people meet virtually, those who are buying and having the goods delivered are getting used to that way of life. In the sphere of commercial real estate, that calls for more warehouse space. I've written before about our location between NY and Boston, as well as our own demand, due to the relative lack of retail here, compared to other markets. Recently, we listed a warehouse near I95, and it went under contract in three days, after several showings. It didn't surprise us, but it may surprise some people, who may feel that the country is in a state of suspense, with no forward movement. Actually, smart businesspeople are positioning themselves for the changes coming with reopening.
Finally, rates are low, and the stock market is volatile. That combination often leads to a boom in real estate. Let's hope so.
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