CURRENT TRENDS IN THE COVID-19 ENVIRONMENT
The COVID-19 pandemic has been a massive disruption to the US and global economies. However, as in all economic crises, opportunities lie ahead. COVID has and will likely forever change the way Americans work and socialize, and so the need for commercial real estate properties will change along with that. It’s important to note that the owners of CRE properties most likely acquired them when those properties’ functionality was well-established and was not in question – thus, they would have paid a premium to acquire them. Even further, in all likelihood, owners are carrying debt service, meaning they’re underwater on those loans or will be soon. Liquidity is in short supply due to the inability to collect rents and fees owed to them by the existing customer base. Current CRE owners will in many cases be forced to sell for a loss to investors who have cash on hand. So, if you’re an investor, you’re probably wondering what you’d do with CRE properties in an environment like this. No doubt, traditional use cases for CRE, like retail, office, entertainment, and dining have been upended, but there’s an opportunity to fill these voids with new and creative approaches to the deployment of these properties. With the change in functionality of CRE properties, along with lesser demand, they’re a bargain compared to previous valuations. Investors who can creatively repurpose CRE properties to dovetail with the “new normal” and emerging economic imperatives, supporting such trends as e-commerce and package handling, warehousing, and groceries or other essential goods can turn these investments into extremely profitable ventures. The risk inherent in this redeployment of the property affords investors the basis to present steeply discounted offers to current owners, and hence where the opportunity lies. We will learn from this and be ready for what ever the future holds.
BIO Reynaldo Santana, a 10 year business development tech guru in the emerging tech sector now looks to create a bigger impact by using his entrepreneur experiences and knowledge to help rebuild this economy with those interested in partnering and building it together. Santana is now actively involved now in identifying, assessing, analyzing and acquiring properties. His specialty is in the commercial sector, where he brings focused expertise under the direction of his personal coach Peter Harris. A leading expert in the field of commercial real estate investing in United States, Peter Harris is author of the best selling Commercial Real Estate book of all time, Commercial Real Estate Investing for Dummies. He also co-authored with Donald Trump the audio program Three Master Secrets of Real Estate Success. His latest release, Commercial Real Estate for Beginners is a #1 best seller on Amazon. and experience. If you who would like to join me in my journey to rebuild America via Commercial Real Estate, please reach out and let's have a conversation. I look forward together to create jobs, apartment buildings, rebuild shopping center, rescue commercial owners and more.