Real Estate Investment Management Specialists NRIA Discusses the Impact of Coronavirus on Real Estate Markets
In a recently released blog post, NRIA has shared insightful expert opinion about the impact of the coronavirus pandemic on different real estate markets. Founded in 2006, the company is a vertically integrated development firm with dedicated divisions for fund management, luxury home sales, and apartment rental. Since 2010, NRIA has been involved in acquiring and developing more than 1,100 luxury residential units across more than 90 projects.
Like every other industry, the real estate industry has also suffered from the negative effects of the coronavirus pandemic. This has left many investors in a quandary about what real estate markets may look like once the global crisis is over. NRIA informs that commercial real estate will be hit the hardest because of this crisis. According to them, retail and hospitality in particular will struggle to recover after shutdowns across the nation. NRIA predicts that the value of office buildings is likely to drop significantly.
The new blog post from NRIA also informs that the demand for delivery services for food and beverage, groceries, and household items has increased significantly because of social distancing. Accordingly, many businesses have changed their infrastructure to accommodate this growing demand.
“Delivery and subscription services have already been growing exponentially, and the effect on brick and mortar retail stores has already been a hot topic in real estate conversations for the past few years. Now that exceptionally high vacancies have turned the $4.4 trillion U.S. commercial real estate market upside down, landlords and investors may want to look elsewhere,” the article mentions.
The residential real estate market has slowed down significantly because of COVID-19. However, NRIA believes that this is more of a pause than a devastating blow. The company feels that the normal spring home-buying season is experiencing an exceptionally slow start because the increasing unemployment figure has made many potential buyers uncertain about the state of their income.
NRIA mentions that the adverse impact of the pandemic will have minimum impact on luxury real estate and this segment is likely to remain intact. According to them, those with enough cash out of pocket are likely to be very eager to move forward with moving plans as soon as they can.
The article says, “While some homeowners may be filling their time by reorganizing and redecorating, it’s highly possible that others are spending this unexpected downtime planning their next move, especially urbanites that are eager to escape the pressure of living in a city in lockdown.”
One of the leading specialists in middle-market institutional real estate investment management, NRIA focuses on luxury townhome, condominium and multifamily acquisition and development. Through strategic partnerships, NRIA maintains complete control through each investment lifecycle.
To find out more about NRIA, please visit https://nria.net/
About NRIA: For more than a decade, NRIA has delivered and continues to build upon a history of exceptional performance as a vertically-integrated real estate investment, management and development firm. The company has extensive experience with full-service construction and complete renovation of planned unit townhomes, single-family luxury residences, condominiums, multifamily and mixed-use rental developments strategically located in many of the most dynamic urban markets across the East Coast.
Tali Haim
RBN Media
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