How is Covid Affecting Commercial Real Estate in Oklahoma?
The Effect of Coronavirus on Oklahoma Real Estate
The Coronavirus/COVID-19 pandemic has changed all of our lives for the time being, and has taken a toll on every industry in the United States. The reported first Coronavirus case in the U.S appeared in January, and in March most of the country went into some form of lockdown or stay-at-home order.
On March 25th Oklahoma Governor Kevin Stitt announced that “Real estate and leasing services” were considered an essential business. This means commercial real estate could continue operating throughout the early throes of the pandemic. Resources were quickly developed to help inspectors, contractors, and real estate agents continue to work safely. However, this didn’t keep business from slowing down substantially. Many real estate transactions were extended, postponed, or even completely canceled, and many tenants of commercial buildings were unable to operate, further slowing things down. There wasn’t a lot of new businesses. Everyone was, understandably, more cautious. Nothing about the future was certain.
How is commercial real estate adjusting to coronavirus?
Multifamily properties, hotels, and office spaces were hit particularly hard by the pandemic. Huge numbers of tenants, especially if they were not able to secure government aid, were not able to make rent, leading to landlords having to work with lenders and try to negotiate new deals. Across the country, thousands of small local businesses folded completely.
Luckily though, many of the deals that were already happening during the early months of the pandemic proceeded, keeping the market going. Businesses were thinking long term and continued to move ahead and finalize leases, looking towards the future end of the pandemic. Now the economy has picked up with the reopening of most businesses, as Oklahoma is currently in the third and final phase of the Open Up and Recover Safely state plan, having entered this phase on May 29th.
Even as things open up, business begins to spur, and the commercial real estate business tries to go back to normal, there are still plenty of adjustments real estate workers have made to stay safe. Electronic documents, video conferences, video tours, wearing masks and practicing social distancing, working from home, and limiting how many people can be present in a building are all ways the industry has evolved to meet the current challenges. The CCPIA put out a COVID guide for commercial inspectors that gives tips on how to conduct safer business.
We can’t say things are back to “normal” yet, but no matter what, we’re committed to continuing to do our part in helping restore business and life back into our communities.
Sources
https://www.nytimes.com/2020/06/05/business/economy/coronavirus-commercial-real-estate.html
https://www.normantranscript.com/news/business/real-estate-housing-industry-adjusting-to-coronavirus-stay-at-home-orders/article_321a2d52-2140-5af3-b332-b9336fad465d.html
https://oklahoman.com/article/5658517/coronavirus-in-oklahoma-real-estate-deals-are-drying-up
https://okcfox.com/news/local/timeline-a-timeline-of-coronavirus-precautions-in-state-leading-to-school-reopening-plans
https://oklahoman.com/article/5658517/coronavirus-in-oklahoma-real-estate-deals-are-drying-up