During the Covid pandemic, it has been apparent that it has set retail back years. With the restrictions placed on many businesses, many stores have shut down and abandoned their leases. Others have negotiated big drops in rent to stay viable. With this, there are many vacant commercial properties sitting idle waiting for the pandemic to run its course.
Commercial investment is showing huge signs of distress with transactions almost halving to a dismal $15 billion dollars from the same time last year. This huge drop shows how unattractive commercial investment is during this time. The only type of commercial investment that has grown is industrial and logistics properties which has risen an impressive 10%. These sorts of properties are often used by online retailers as their distribution bases. Online retailers such as Gorman have been doing exceptionally well during this period with many consumers being limited to online shopping due to lock downs. Use a Gorman coupon code to save on your purchase.
Industrial transactions made up 31 per cent of all transactions, a big rise from the previous 15 percent. Office property was steady at 52 percent of total transactions. The biggest and obvious drop was with retail transactions which dropped by 51 per cent.
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