LOS ANGELES (AP) — After a horrible 2020 that saw many tenants fall behind on rent or go belly up, commercial property landlords are seeing signs of improvement…
LOS ANGELES (AP) — After a horrible 2020 that saw many tenants fall behind on rent or go belly up, commercial property landlords are seeing signs of improvement this year, including a jump in hiring by restaurants, bars and retailers. Still, the work-from-home and online shopping trends are expected to permanently reshape demand for office and retail space, says Hessam Nadji, CEO of Marcus & Millichap, a commercial real estate financing and advisory company. Nadji recently spoke to The Associated Press about the state of the commercial real estate industry and its prospects for a comeback as the economy slowly emerges from the pandemic. Q: 2020 was a rough year for commercial real estate, especially retail. How is that sector looking now? A: We’ve seen a big surge in retail related confidence, both in what landlords are reporting in rent collections as well as buyers, who are now willing to look at shopping centers they weren’t willing to look at before. So retail is seeing this more immediate kind of pop in confidence and reopening benefits, especially when it comes to restaurants, bars and entertainment. Retail is feeling the healing cycle begin and it’s very encouraging. Q: Will the surge in online shopping be a drag on retail space demand? A: The e-commerce adoption and e-commerce prevalence has permanently been boosted by the pandemic. Experiential retail — movie theaters, fitness related retail, yoga — those were the best performing parts of retail, pre-pandemic.
