The pandemic of COVID-19 threw a curveball and caused a global economic downturn as job losses and business shutdown numbers increased. As Colorado’s stay-at-home orders lift slowly for businesses, one determining factor of a return will be on the reclamation of jobs this quarter. The surprising May increase in employment (30,000 new jobs) could bode well for Denver, which outperformed the national benchmark the month prior.
As predicted in Q1, the pandemic shutdowns have had less of a negative impact on the IM than in the Retail or Office markets. Most tenants in industrial operations are considered essential and did not undergo mandatory shutdowns. Third Party Logistics and e-commerce tenants have had an increase in activity as consumers frequently ordered from home during the pandemic. Locally, Amazon leased 700,000 SF in Aurora in mid-March as part of its plan to hire an additional 175,000 workers from here and across the country.
Investing in commercial real estate has historically been a sound option for investors looking for a stable return on their capital investments. Entrepreneurs looking to build wealth should consider purchasing commercial real estate in our current economic conditions and take advantage of the low interest rates and aid programs available through COVID-19. The report also discusses the advantages in distressed properties too.
For more information on how to benefit from the current commercial real estate market, contact Transworld Commercial Real Estate at 720-574-2953 or visit transworldcre.com.
Transworld is a leading commercial real estate firm in Colorado serving the Rocky Mountain Region. Over the past six years our team has completed more than 200 transactions totaling 2.5 million+ square feet in leasing and have completed in excess of $20 million in sales over 25 states in the retail, office, industrial, and flex commercial real estate markets. Through their business brokerage partner, Transworld Business Advisors – Rocky Mountain, Transworld also advises clients on business mergers & acquisitions.
*This Commercial Market Report was compiled with data provided by Transworld Commercial Real Estate, The Denver Post, and CoStar.