What Will Happen To Commercial Real Estate With Covid-19
Hey, Sunny with Synergy Real Estate and Property Management here in Bakersfield. So today, we are actually going to be talking about, a little bit about office space and commercial retail space.
So something we’re noticing, being directly in COVID-19, it’s affecting everybody, right especially with the commercial side of things. Some businesses cannot open at all. Some businesses are working on a part-time basis. Some businesses are outside only businesses right now and some businesses are just opening and running full steam. Right, so, what we’re seeing is that because of this, and not knowing how long this is gonna last with COVID-19.
A lot of these businesses are actually shutting down locations or moving out of their office base to move out of their retail space and are starting to look for venues of how we earn income outside of a physical location.
So what’s that doing is helping with teleworking and teleworking is allowing people to say: “No, I don’t want to live in this $2000 dollar studio apartment in downtown LA. I’d rather live in a 4-bedroom, 2-bathroom house in Bakersfield for $2000 dollars a month.”
What’s that allowing for a lot of these small markets to do is to hold their prices up, hold the wholesale prices up, hold the rent prices up, bring the vacancy rates down. While what we’re seeing in these larger markets is that you are starting to see the sales price coming down, the rent prices coming down, and people are trying to offer incentives to get people in their properties.
So over time, it’s gonna be really interesting to see what this COVID-19 situation does to this office base, retail space in the long term. But for right now, what we’re seeing is for those people who are leaving those office spaces, retail spaces, and people who are subletting those office spaces, retail spaces. And some people are just staying in their spaces, and you know, and try not to get evicted at this point.
And in Bakersfield, that is something that’s happening, you know, because we have the courts closed at this point. We can’t process eviction the normal way. They’re still processing some types of files but they’re not processing all evictions.
So the residential side is not seeing that but commercial, retail offices, you know, are kind of under a different set of rules and those you know, are definitely working a little bit different.
But I just wanna kind of come to you today about what’s happening with COVID-19 in office space, the retail space. If you’re looking for a property or looking to sell a property or even have a property leased, we’ll do that here in Synergy Real Estate and Property Management in Bakersfield.
If you’re outside of Bakersfield watching this and interested in our services, we actually do refer out to other agents as well. Please still feel free to call us. We can vet other brokers for you and find you someone who can successfully take care of the building you are looking to buy, sell, or lease in other areas as well.
If you’re here in town, buy, sell, lease, manage, we can do it all. We do have specific people for each category and we’ll be happy to help you.
Please feel free to reach out and we look forward to seeing you the next time on this Sunny Real Estate video.
Thank you. Take care.