In the commercial retail world, and beyond, the pandemic has treated tenants unequally. NAI Elliott brokers George Macoubray and Nick Stanton look back at who thrived, who didn’t and what recovery looks like during 2021.
From tenants that have closed their doors to tenants that are doing better than ever, the effect from the pandemic has been varied. National tenants with better infrastructure, relationships with banks and sounder financial footing have stayed open and continue to move on commercial real estate opportunities for those reasons. They are also better situated to adapt and adjust through the changing pandemic related government mandates.
Overall, the market has stayed fairly normal from commercial real estate brokers like George and Nick. Even after an unprecedented year, tenants are still looking for commercial space and the overall vacancy is about 6% which is up from the historical low of 3.5 - 4% we saw before 2020.
Tenant needs have changed dramatically over the past year. Some businesses are finding a need for more residential exposure as downtown CBD areas become quiet with people work from home. Because of this, retailers and restaurants are looking to the suburbs to expand.
Healthcare companies like Zoom Care and AFC Urgent Care continue to do great as they provide not only general medical services but have actually expanded to offer antibody testing and more pandemic related services. Their biggest hurdle has been adapting to accommodate social distancing guidelines within their office spaces.
George and Nick expect to see continued recovery and a return to normal as 2021 progresses.