Welcoming the Biden/Harris Administration: Top Commercial Real Estate Predictions
Last week, the U.S. welcomed a new era in American history—the Biden/Harris administration.
After a year combatting the COVID-19 pandemic with no immediate end in sight, the new administration must adapt to the challenges that Americans continue to face in 2021. With plans to stimulate the economy, roll out the COVID vaccine and implement new green initiatives, the commercial real estate industry must adapt accordingly. During the next four years, the CRE industry should anticipate:
Employers and office buildings must address the reality of COVID-19.
With the new administration’s plans to combat COVID-19 more aggressively, the CRE industry will continue to adjust.
The flexible/hybrid workplace is here to stay. Employees expect a hybrid solution when coming back to the office. Some corporations are already beginning to offer Fridays as a designated work-from-home day with some others implementing a three days in, two days at home schedule. Gone are the days where productivity was counted by what time an employee clocked in and clocked out of the office Monday–Friday.
With that said, office space is not dead. As humans, collaboration and interaction is:
1) What most individuals crave;
2) Essential to the creation of new ideas and successful businesses.
Builders may implement smart property technology into their buildings to cater to the new habits formed out of COVID-19—a hyper awareness of germs. By implementing new precautions, building owners and developers can instill confidence into tenants to come back into the office.
Developers and building owners will go green.
President Biden’s cabinet picks are a sign of certainty when it comes to legislation on environmental sustainability. Former Secretary of State John Kerry was chosen as the first-ever climate czar and Climate Leadership Council co-founder Janet Yellen was chosen as Treasury Secretary. These picks support sustainable and effective climate policy.
Biden’s sustainability plan would mean updating 4 million buildings nationwide to sustainability standards, creating CRE jobs in the process. It would also bring profit for sustainability-minded CRE owners, executives and investors.
An economic stimulus may provide direct rent relief.
The Biden/Harris administration supports HEROES Act which includes more stimulus checks to the American public as well as extended unemployment. This would stimulate the CRE industry by allowing renters to make mortgage payments.
Regardless of political affiliation, there is no doubt that 2021 will be a year of substantial change. Witko Group is prepared to support its clients and adjust to the ever-evolving climate in commercial real estate.