Understanding COVID-19's Impact on Commercial Real Estate

Abstract

This research paper explores the impact of the COVID-19 pandemic on commercial real estate in the United States, analyzing its impact on societal dynamics. The study explores several industries, including retail and office, and notes how these industries have adapted. Statistical data analytics before, during, and after the pandemic were used to understand the extent of the impact. By using this data, we make predictions of what the future holds in each industry.

Furthermore, this study examines overall trends in specific cities to develop an understanding of how consumer behavior has changed and what businesses are doing to adapt to these changes.

Based on the evidence, as the work-from-home life culture continues to spread through various industries, office vacancy rates will continue to increase as more businesses transition towards remote conditions. The United States is at an all time high in vacancy rates with no sign of decreasing. Industries like IT have led this movement, while others aren’t far behind. Moreover, the retail industry will continue to expand its digital capabilities as people prefer shopping from the convenience of their homes. Businesses unable to adapt online will have difficulty competing with other businesses.