Investors will never stop searching for commercial real estate properties to diversify and expand their portfolios. If anything, in a recessionary environment, more investors are eager to acquire real estate. What is unknown is how the shifting market will impact acquisition needs.
Will CRE professionals see their buyers switching into different product types than what they historically bought? The real estate market will be watching with a close eye during this transitional time.
Early conversations have centered around how our work-life abruptly changed. The increased reliance on remote work means we need more data centers, distribution centers, and warehousing. Less emphasis will be on office and retail spaces. How this workforce shift will impact markets in the long-term is unclear.
Another big question: what about the economic impacts of the coronavirus pandemic to hospitality and low-income multifamily properties? The multifamily sector had strong demand and interest in national markets due to housing demand. The high unemployment rate has caused millions to forego making their rent payments, in turn impacting the potential revenue from this asset class.
Will the changing revenue streams potentially deter buyers from these asset classes? Or, will investor interest increase because they want to find a bargain ripe for income-generating potential when the markets rebound? After all, individuals still need places to live. People eventually will travel and eat out again.
The only thing known for certain is this is a changing situation that will develop over months. To navigate changing needs, CRE brokers and agents must know who the buyers are and what they are buying.
Finding the right buyer was always a challenge in more robust real estate times. In a down market, it’s more vital to have the broadest reach possible. Interested buyers could be anywhere! At the same time, CRE brokers and owners need to be smarter about their marketing allocation.
By using a platform like BuyerVista, which matches interested and real-time buyers with sellers, marketing is more efficient because it’s targeted to people already looking for your kind of asset. The interest gained from working through BuyerVista helps CRE sellers connect with the buyers that are shifting their strategies first.
Whatever happens, we still need places to work, live, and play. Investors haven’t stopped buying, but they may be moving into new markets. It’s our job to find them and connect. BuyerVista builds links between the buy side and sell side while keeping properties discrete and providing real estate acquisition insight.