What does this mean for investors? Certain sectors, such as retail, office space, and hotels, are experiencing painful uncertainty caused by an understandable drop in revenue. But there has not been a shockwave yet across all types of commercial space. As most leases are two-year or longer terms, many office buildings and commercial spaces are in a sort of plateau.
The leases haven’t expired, and the sentiment seems to be that things will go back to normal – or near-normal – when the pandemic lockdowns are eased. And while sales volume and commercial real estate prices have dipped some, there’s no fire sale of existing commercial space (at least not yet). Nevertheless, it doesn’t seem like the most opportune time to jump into commercial real estate investing right now.