Everywhere we go these days, we see signs of the region opening up. Since we in Connecticut were so locked down compared to some other parts of the country, the difference is palpable. There are many fewer masks, at least outside, and more open storefronts. Traffic has also picked up. Economists are predicting a surge in consumer spending, with price increases and supply shortages. Tour operators and airlines are seeing strong demand, with many trips around the country and the world sold out.
What will this mean for commercial real estate in our area? With people venturing back to "normal" life, and not as much to spend their money on, with building projects and delivery of many consumer goods backed up, they are likely to patronize restaurants, stores, and other attractions. Summer weather will likely bring a boom in the retail sector.
Rental and multifamily housing will also remain strong. Families who have sheltered together may have come to the end of that phase, and younger--and maybe older--members will seek new apartments, especially if the supply of single family homes continues to be so scarce. Greater New Haven and Greater Hartford are primed for more demand in this sector, with lots of new projects, and affordable prices. Given our vaccination rates, we are likely to attract those from other places as well.
Industrial real estate is like toilet paper was last year--there just isn't enough to go around. That leaves office space as the wild card--how will it do? Some changes in commuting patterns and remote work seem permanent, or at least semi-permanent, so that will have an impact. But, if the economy booms, will new companies take that leftover square footage for new ventures? Let's hope so.
In the meantime, let's enjoy Connecticut's moment in the sun--literally and figuratively!
No comments:
Post a Comment