Buying Commercial Buildings On the Rise Amidst Pandemic’s Inventory Surplus
Oct 9, 2020
The commercial real estate industry had an estimated $12 trillion in value in 2016, coming in a close third to residential real estate and common stock. Given the pandemic, businesses are debating whether to keep their office space.
Northbrook, United States - October 8, 2020 /PressCable/ —
The commercial real estate industry had an estimated $12 trillion in value in 2016, coming in a close third to residential real estate and common stock. Unexpectedly, the pandemic has brought on a new wave of teleworking, and businesses are debating whether to keep their office space or go completely remote. 75% of current teleworkers say they would continue to work from home after the pandemic, but is “working from home forever” really sustainable?
Business owners and executives alike have big decisions to make about the future of their companies. With the current commercial real estate market, businesses can reap the benefits of buying commercial buildings at a reduced price, giving them new opportunities that were once not possible.
The Commercial Real Estate Industry During the Outbreak
Since coming back from the 2008 recession, the commercial real estate industry was booming. According to the 2020 commercial real estate outlook published in 2019, the United States CRE markets were predicted to maintain global attractiveness and continue to see growth.
The industry outlooks have changed since the lockdown in March, and the new market predictions for 2020 and 2021 are looking different. Typically, during a decline in real estate, it takes six to eight months to see the effects, but with the COVID-19 pandemic, the CRE industry took a hit almost immediately. This was because trade activities and occupiers’ businesses were shut down.
Even with the disruption transforming how people and companies finance, operate and occupy real estate, companies are still proving that office spaces are not a thing of the past. Amazon bought the Lord & Taylor building on Fifth Avenue and has decided to continue with the office expansion. Other companies are visiting the idea of creating satellite offices or new headquarters outside of the city.
While the commercial real estate industry has changed, experts are not worried about the long-term effects of COVID-19 and believe that the market will come back stronger than ever. The “way forward” for many companies could be owning an office space, providing an excellent investment for business owners and employees.
The Way Forward For Companies
People are more inclined to work from home on a more permanent basis during these times, but once the pandemic is over, people will be more comfortable coming back to the office. Providing an office setting that makes better sense for employees, follows social distancing protocols, and offers a unique culture could benefit companies greatly.
While the pandemic has weakened commercial real estate prices in the second quarter, companies can purchase commercial real estate at a reduced price. According to Real Capital, retail prices dropped 2.8%, and offices fell 0.9%, while hotel prices declined 4.4% in the year through July. There are also many other benefits to buying a real estate property as a company, such as tax benefits, fixed rates, and the ability to build equity.
Investing in a commercial building as a business owner can be one of the best decisions for a company if the proper research and planning are done. Whether a start-up growing from the ground up or an established company is looking to purchase commercial real estate, the critical decision to buy a space can have a great impact on your business’s future. And when making this vital decision, Centrust Bank, a bank located in Northbrook, Illinois, offering an array of commercial banking services, has the resources and services available to simplify the process.
With a strong commitment to the real estate industry in local markets, Centrust Bank’s customer-focused approach means clients get a dedicated, experienced Commercial Banker – and a single point of contact – to help with all their professional and personal banking needs. Centrust helps business owners purchase, refinance, or improve the real property for their business or investment portfolio.
With enough research and due diligence, purchasing commercial property is a sound investment and provides many long-term benefits for your company
About Centrust Bank
Founded in 2006, Centrust Bank has grown to become a leading Chicago area community bank that helps small to mid-sized businesses grow safely and profitably. Centrust has established itself as a leader in and excels at offering SBA programs for small businesses.
To learn more, or to contact Centrust Bank, please visit their website: centrustbank.com
Centrust Bank is an Equal Housing Lender. Member FDIC.
Contact Info:
Name: Tom Meyer
Email: Send Email
Organization: Centrust Bank
Address: 385 Waukegan Rd, Northbrook, IL 60062, United States
Website: https://centrustbank.com
Source: PressCable
Release ID: 88980148
Hangzhou launch for Project B league in January just part of busy Chinese sports year
The newly founded basketball league Project B earlier this week announced the first stop of its inaugural global basketball grand prix: in Hangzhou in January next year. While the debut of the global basketball tour has seen a slight delay – from its intended start this November – and the announcement of the Chinese host city came months later than anticipated, Project B is one of many major sporting events to be held in mainland China between now and the end of next year. “China has always had...
Red Bull’s Max Verstappen eager for first win of season at Bahrain Grand Prix in Malaysia
Max Verstappen said he wants to win “at least one race this year” as the four-time Formula 1 champion sits in an unfamiliar sixth place in the championship standings after 15 rounds. Having dominated Formula 1 in recent years, Verstappen has managed only seven podium finishes this season and is still searching for that elusive first win, coming close with second-place finishes in his past two outings in Madrid and Baku. Verstappen’s desperate charge against George Russell on the final...
Sky Jewellery and Ka Ying Lightning steal the show with impressive wins on National Day undercard
Most of the hype on the National Day undercard surrounded Hot Delight and Jedi Spurs, but it was Sky Jewellery and Ka Ying Lightning who stole the show and underlined their own immense talent with impressive victories. Sky Jewellery stamped himself a potential Group One Hong Kong Mile contender with a barnstorming return in the Class Two Beijing Handicap (1,400m), improving his record to six wins from nine starts after gunning down Hot Delight late. And Ka Ying Lightning maintained his perfect...
David Eustace mulls international targets as Colourful King secures Group Three glory
David Eustace has not ruled out international targets for his crack sprinter Colourful King after he ran riot to win the Group Three National Day Cup (1,000m) at Sha Tin on Thursday. Sent off the $2.2 favourite, those who took skinny odds about Colourful King had very few worries, with the Blue Point galloper breaking well and sitting handy behind duelling leaders Beauty Waves and Magical Control. The latter won that argument handily at the 400m pole, but he was always being stalked by Colourful...
Manchester City scandal risks damaging Premier League’s booming global brand
The Premier League has won a lengthy legal battle with Manchester City over financial impropriety, but the consequences could leave lasting damage for a league that has long been the envy of world football. City face severe sanctions after being found guilty of more than 100 charges between 2009 and 2018, with an independent commission exposing “sham” contracts to artificially inflate the club’s revenues and reduce costs by more than £900 million (US$1.2 billion). A hefty points deduction...
Asian Games: China’s Wang Xiyu ousts Philippines top seed Alexandra Eala in semi-finals
Philippines tennis star Alexandra Eala saw her bid for Asian Games gold, and qualification for the 2028 Los Angeles Olympics, end in Thursday’s semi-finals after a stunning 3-6, 6-3, 6-2 loss to China’s world No 85 Wang Xiyu. Top seed and world No 18 Eala was looking to become the first woman from the Philippines to win the title. The 21-year-old will instead go home with only a bronze medal, which she had also won at the last Games in Hangzhou, where she also won bronze in the mixed...
Tourists, locals brave the heat to enjoy National Day festivities at Sha Tin Racecourse
Sha Tin Racecourse was filled with music, acrobatic displays and cheering on Thursday as some 10,000 tourists and local residents gathered to celebrate National Day. Despite Hong Kong sweltering in 33-degree Celsius (91.4 Fahrenheit) heat on October 1, spectators fanned themselves under clear morning skies, eagerly awaiting special performances for the 77th anniversary of the founding of the People’s Republic of China and the marquee Group 3 National Day Cup. Jockey Club boss Winfried...
Asian Games, day 12: Hong Kong cyclists add track silvers to sailing, squash medals
Hong Kong’s athletes edged the city ever closer to another historic medal haul at the Asian Games on Thursday, with the cyclists, sailors and men’s squash team all adding to the tally. The women’s squash team have guaranteed themselves at least a silver on Friday, while tennis star Coleman Wong Chak-lam eased into the semi-finals of the men’s singles, and in rugby sevens, the men began the defence of their title with two dominant performances in Nagoya. Ever since the schedule came out, there...
Asian Games: Eala takes on Wang with gold in her sights, Olympics in her dreams
Alexandra Eala faces her toughest test of the Asian Games so far on Thursday when she takes on China’s Wang Xinyu in the semi-finals of the women’s singles. Victory will take the 21-year-old a step closer to gold, but after battling past Chinese Taipei’s Joanna Garland in the last eight, she said it had not been an easy decision to come to Japan in the first place. While Eala and the rest are in Nagoya, the China Open is taking place in Beijing, and as a WTA 1000 event, it is mandatory for tour...
Man City’s egregious rule-breaking leaves clubs, fans waiting to see what happens next
It was nearly two years coming but when the Premier League’s verdict arrived this week it buried Manchester City. Quite how far beneath their current exalted status will become clearer in the fullness of time, although the 21 months needed to reach a conclusion over the 100-plus charges levied against them would suggest it will be a while before the club discovers if it will be fined, stripped of titles, docked points, relegated, or all of the above. “I’d put them in the lowest league they can...
SCMP Best Bets: 1 October
Jay Rooney MAJESTIC VALOUR - R11 (11) Has trialled well and looks ready to fire first up for his new stable Owen Goulding GOOD FORTUNE - R1 (5) Hosed up on return, trialled well since and looks poised to win again Paul Lally VIRTUS GLORY - R8 (4) Big run last start when wide throughout and is drawn to win here Phillip Woo VIRTUS GLORY - R8 (4) Was a gallant second first up and can go one better from an ideal gate Trackwork Spy VIRTUS GLORY - R8 (4) Went down fighting on his return and...
Asian Games, day 11: Hong Kong’s squash teams guarantee bronze, Wong battles into last 8
Hong Kong will collect at least two more bronze medals in squash on Thursday, although the men’s and women’s teams have loftier goals in mind at the Asian Games. Semi-finals against Pakistan and India at the Nagoya Kinjo Futo Arena stand between the Hong Kong players and a shot at gold. With cyclist Ceci Lee Sze-wing in action in the women’s Madison, Coleman Wong Chak-lam into the quarter-finals of the men’s singles, and the start of the rugby sevens, the city’s athletes will have designs on...
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.