With the year 2020 now being behind us, where do we stand right now, and what does this all mean for
good investment opportunities coming our way in 2021? With the COVID-19 situation that we’ve been
facing during 2020, the retail and hospitality industries have gotten hammered, and it’s pretty safe to say that these two industries will still be facing their own continued challenges during 2021. With this in mind, it doesn’t appear that anyone will be able to just snap their fingers to reopen places like restaurants and hotels to their full capacity once again, and with these types of limitations being placed upon these kinds of businesses, the properties connected with them will still continue to face their own challenges, too.
However, there’s always the old expression, “from crisis comes opportunity”, and I have to believe that there will be those investors who will envision this opportunity, and then capitalize in moving forward and creating that opportunity for themselves.
Industrial properties have been doing very well at the national level, and it appears that this will be continuing on. The growth of e-commerce and the demand for high-quality industrial warehouse properties have been major drivers of all of this, and let’s face it, people don’t seem to be saying that the growth in this kind of overall demand will be going away anytime soon.
Then with office buildings we have an interesting situation, because there will continue to be more people than ever before working from home, while those who will be working within an office environment will still be dealing with social distancing. So uncertainty still remains around how strong the continued demand for office space will be within any given area.
Then with apartment buildings, as long as you own apartments in areas that have a strong demand for occupancy, in areas that aren’t overbuilt, and that also don’t have a lot of extra land in the area for new apartments to be built on, you should be fine.
With this in mind, what will then cause the good investment opportunities to appear will oftentimes be 1) Properties that are in financial distress, and 2) Property owners who will be in financial distress. These situations will then appear on a case-by-case basis, and the key as always will be to have the financial wherewithal to act quickly whenever these opportunities arise.
So if you may be looking to purchase property in 2021, or if you may be looking to sell your property, give me a call so that we can discuss your own specific situation, and then work towards achieving the outcome that will be the best for you.
