Currently, there is a looming coronavirus pandemic that has affected every aspect of the life of all human beings. Likewise, the commercial real estate industry is experiencing the same hit in all the United States such as Texas. While exploring the world’s history, they will notice all the external incidences such as the global financial crash that happened in 2008 greatly impacted the Real Estate Industry, by lagging the trajectory for an estimate of six months.
Prior to the Coronavirus outbreak, the Real Estate Industry of Texas was healthy enough in all locations in North Texas and across (U.S). Research done by the Deloitte Company had estimated that CRE was to make more profits in the year 2020. Nonetheless, since the break out of coronavirus, the industry has experienced a thrust following the closure of businesses and trading activities.
Notably, a typical crisis depicts its impact through three phases. First, is the response phase, in which a given entity handles their crisis and upholds continuity. Secondly, it’s the recovery phase where the affected entity learns from the previous happening and emerges with more strength than before. Lastly, is the thriving phase; in this phase, a given entity prepares for the future and shapes the next normal in their industry.
In the CRE’s response phase, real estate experts have seen liquidity in management, tenant support, and use of technology. As they prepare for the recovery phase, the experts should shift attention to entering physical locations, tenant preferences, and cyber experience. While planning for the thriving phase in various states including Texas, the look may be different for the Commercial Real Estate industry. Each organization and key industry players should prepare and envision what the future will be like after the coronavirus.
Besides, the futurists are the Deloitte have outlined various scenarios that may help the CRE companies after the coronavirus. First, they have emphasized that the CRE leaders to think of the earlier goals that can still be exploited. What are the key factors that the tenants are likely to prefer and which assets are likely to be prioritized after the pandemic?
The current coronavirus pandemic has hit the CRE industry differently from the previous global crisis. However, CRE leaders can implement the various steps and phases to minimize the loss and re-establish the industry again. They should implement the response, recovery, and thriving phase in varying degrees across various states such as Texas.