Thursday, May 21, 2020

The New Normal Seems Workable

When we have listings, we have calls, leads, and showings.  It's that simple.  It's particularly true with industrial space, where no new product has come onto the market in decades.  Docks, overhead doors, and clear span are all important, but the most necessary?  You guessed it--location, location, location.  We are within one day's drive of a third of the US population.  Ecommerce is at an all-time high.  Shipping and delivery are key success factors in that industry.

We didn't know what to expect--not as though anyone else did, either--when the pandemic set in.  We knew very little about the coronavirus, and less about the prognosis for its effect on the economy, except that we knew it wouldn't be good.  Lockdown began, and we all held our breath.

Now, as Connecticut becomes the last state in the nation (along with Massachusetts) to begin to reopen, we have a different point of view.  Although our unemployment is sky high, and our economic damage great, the real estate market is surprisingly robust.  Lack of supply is one reason, but the longer term looks good as well.  Some businesses are doing better in the telecommuting economy.  Many are bouncing back.  The outlook is far less sanguine for retail and big office buildings, but people plan to work, live, and play in the future.  The new normal, as it turns out, may not be all that different from the old normal, from a real estate point of view.  Yes, open floor plans will do a dive, many restaurants will not survive, and big buildings dependent on elevators may suffer, but other trends will emerge.  Small cities and suburbs will thrive.  Open space will raise value.  Banks will make loans.  Cash will leave the stock market, and go into real estate.  Elective surgery and medical visits will begin again.

I'm writing this on a staggeringly beautiful spring day in New England, and maybe that's making my viewpoint sunnier.  But maybe not--people are resilient, and so is America.  We can't forget the motto of the National Association of Realtors--"Under all is the land".  And it's still there.

No comments:

Post a Comment