In the face of COVID shutdowns and the 2020 recession/recovery, many continue to refer back to the 2008 housing market crash. However, when compared to the last recession, the 2020 real estate market is positioned much better than it was a decade ago. The COVID recession/recovery deals with high home prices and a lack of inventory as opposed to the pressure on housing debt and foreclosures and specific market segments such as hospitality, restaurant, and retail experiencing the majority of the slowdown with office/industrial having a tremendous recovery.
An economic recession may cause a downturn in business, but it can still bring real estate investment opportunities such as greater industrial requirements for warehousing. Diversifying your portfolio with long-term investments often brings stability during uncertain economic recessions. Industrial real estate is expected to have positive net absorption by Q2 of 2021. The report from NAIOP Industrial Space Demand Forecast also predicts that there will be a rise in e-commerce.
While there will be a long road to overall recovery, predictions for industrial and commercial real estate in 2021 remain optimistic. Brevard County in particular has seen positive growth in regards to jobs supported and the economic impact to the commercial real estate industry. The Space Coast offers new opportunities in manufacturing and technology as well as a booming job force thanks to diverse opportunities such as SpaceX.
Industrial real estate stability improves the local residential real estate market and also leads to local growth over time with additional commercial real estate. People who live and work in a community will need stores to shop at and as well as restaurants and entertainment. As you can see, investing in commercial real estate as a long-term investment always has growth potential. When you hire a local real estate specialist they can guide you with local knowledge about the real estate market and help you find the best investments in each community.
At Ullian Realtyour brokers live and work in Brevard County. With decades of experience in commercial real estate, they understand the best investment opportunities for the local market. Contact Ullian Realty today to learn more.
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