Michael Korsh recently discussed why and how commercial real estate sales are skyrocketing.
Michael Korsh is a real estate expert with years of experience in the fields of building and real estate. He recently discussed why and how commercial real estate sales are skyrocketing amidst the COVID-19 pandemic.
“The COVID-19 pandemic is fueling record-breaking commercial real estate sales,” Korsh said. “Many people are wondering why and if now is a good time to start investing in this type of real estate.”
The Rebound of Commercial Deals
Commercial real estate deals came to a halt when the pandemic took hold in the spring of 2020. However, 2021 saw a major rebound and even some of the best commercial real estate sales in history.
Experts like Michael Korsh state that this is due to the panic of the early pandemic days subsiding. People became more optimistic and this created an advantage for those in commercial real estate.
“Owners of commercial real estate were forced to make their buildings more inviting for customers and employees,” Korsh said. “Many commercial real estate owners had to completely alter what the building could be used for.”
Korsh explained that warehouses previously used for storage were turned into e-commerce fulfillment centers. He added that investors began predicting a travel boom due to reduced travel restrictions. This led them to purchase hotels and resorts in leisure destinations. Apartment buildings were and are still being purchased to capitalize on skyrocketing rent prices in some areas.
“The COVID-19 pandemic has changed the market entirely, but that has worked in the favor of many investors,” Korsh said.
In Search of Opportunity
Michael Korsh explained that investors are taking this rise in commercial real estate as an opportunity, and opportunities like this don’t come around very often. In fact, an opportunity like this one has not occurred in recent history.
Another reason commercial real estate sales are high is because prices are low. Korsh stated that investors are taking advantage of prices that are at a 10-year low. Many companies that moved to partial or full-time work-from-home settings moved to smaller offices or out of their buildings entire. This dropped prices at a rapid rate.
Now, the panic has subsided, and many companies are returning to office settings. They’re filling these office buildings, strip malls, and other commercial real estate centers that were sold at extremely low prices.
Michael Korsh Predicts Continuing Sales in Some Areas
Korsh explained that the boom in commercial real estate can be seen in some areas of the country while others are still lagging behind. He predicts that investors who took their chances on apartment buildings in more rural areas, warehouses, and resorts in easy-to-get-to places will see continuing success.
Michael Korsh is the owner of JFA Real Estate. His company works closely with the minority-owned company Benson Construction. Together, the companies are helping investors succeed amidst the unprecedented COVID-19 pandemic.
