Because office buildings are empty, stores are open only a few hours, and hotel occupancy rates are considerably low in this health crisis, the outlook for commercial real estate has been clouded and an uncertain future is projected.

Containment measures taken over the last year in response to the pandemic have closed stores and offices, and dealt a severe blow to demand for commercial real estate, particularly in the retail, hospitality and office segments, according to an analysis by the International Monetary Fund (IMF).

Learn more about the “Real Estate Project Feasibility Studies” that we carried out at CentralAmericaData.

The document published on March 29, 2021, highlights that “… beyond its immediate impact, the pandemic clouded the outlook for commercial real estate, given the emergence of trends such as the decreasing demand for traditional stores in the face of the advance of e-commerce, or for offices as teleworking policies are imposed. According to a recent IMF analysis, these trends could disrupt the commercial real estate market and threaten financial stability.”

According to the IMF, the situation of the commercial real estate sector could affect global financial stability: it is large, its price movements tend to reflect the overall macro-financial picture, and it relies heavily on debt financing.

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