Commercial real estate professionals in Colorado are navigating new obstacles amid the COVID-19 pandemic. These unprecedented challenges include virtual showings, finding buyers during an economic downturn, and navigating the shift away from centralized offices as more and more companies are deciding to work remotely for the foreseeable future.
The most important thing you can do now as a real estate professional in the commercial industry is BE PREPARED. I’ve put together the newest trends to help you do just that.

1. Remote Working is Working
Companies are quickly learning that telecommuting is an effective and responsible way to manage business. The health and safety of employees is taking a front seat when evaluating what is necessary to conduct daily business. In addition to that, companies are finding it redundant to maintain the continuity of a central office – such as electrical power costs, data
connectivity costs, and other security costs. People’s homes now have the value that commercial office spaces once had. The importance of office space in a home is increasingly vital now that working from home will continue through the foreseeable future. This may have a detrimental effect on office space and its value moving forward.

2. Smart Amenities are Necessary
Adopting new, smart technology is becoming a need-to-have asset in commercial spaces. Whilet he adaptation of your commercial office spaces into the 21st century was once a luxury, it is now becoming a necessity due to the hands-off approach these amenities take. For instance, hands-off sinks and soap dispensers can help stop the spread of illness as well as automatic flushing toilets. Automatic hand sanitizer mechanisms can also be a great asset when it comes to stopping the spread of not only COVID-19, but also the flu. Creating or updating a space to make it accessible and hands-off is going to change the dynamic and value of your Colorado commercial real estate in the next 12 to 24 months.

3. Demand for Denver Commercial Spaces
Many institutions large and small have put work from home requirements in place that are eliminating the need for their physical space. Work from home combined with the impact of COVID-19 on smaller business has greatly increased the number of subleases on the market. Younger companies that have survived the pandemic are now looking for more flexible spaces and leasing terms. Companies are also noticing that they can get the same – if not better – performance from their employees who are working from home. Lower overhead costs and more productivity means less need for a physical office space. There is currently so much uncertainty about the future of businesses and if they will be able to operate during the pandemic. This greatly affects the value of the business and its assets including commercial real estate.

4. The Importance of Property Maintenance
Property maintenance is of the utmost importance during these unprecedented times. Disinfecting surfaces only scratches the surface – pardon the pun – of what you need to do to maintain the interiors of your property. Sanitizing floors, and regular, visible cleaning will impart confidence into your consumers or employees that you are taking their health and livelihood seriously. Investing in the maintenance of your commercial property will become an integral part of your commercial real estate ownership.

5. What is Succeeding Right Now?
While the rest of the world is focusing on stability, the commercial real estate world also has to focus on success. COVID-19 has prompted many real estate investors to track what kind of business is performing in a short-term analysis. There is currently a huge reallocation of capital happening in the industry. Investors want what is durable. While it is important to also look at what will succeed long-term, with shorter lease terms commercial realtors and investors have more flexibility when making those choices. So yes, while long-term success is a goal, essential businesses – such as grocery stores, pharmacies, medical companies, and service centers – may be the best investment for the time being. Evaluating what that would mean for your commercial property doesn’t have to be so daunting when short term leases are prominent.

6. The Significance of Adapting
The industry’s ability to adapt is part of what makes it so strong. Aside from the economic uncertainty, commercial real estate has been hitting its mark in terms of success during COVID. The industry has adapted to the new market of “work from home” environments and has been using innovative tech programs to see it through. Rethinking what flexibility and modified solutions will be for different businesses and industries will drive how performance is measured in the next 3 to 5 years. Being prepared, but adaptable will be your biggest strength when it comes to commercial leasing in the years to come.