Peter Mohylsky (PMI. Destin)

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Rainmaker
1,357,266
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Interesting observation and may hold true for many industries. 

Short-term, yes.

However, the Wuhan Virus trend of distancing will fade, ultimately commercial will feel the pinch when the owner looks at employees not social distancing ever and then he starts to wonder "why do we need all this space then?"

May 12, 2020 11:30 AM
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

There are so many 'ideas' being floated right now. All I am certain of is what is happening in my own life and my business! 

It will be interesting to see how it all pans out though, Peter.

May 12, 2020 01:07 PM
Rainmaker
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've heard that.  What people a failing to take into account is that these six foot rules are not here to stay.  This is a temporary thing.

May 12, 2020 03:31 PM
Rainmaker
1,448,213
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

At least they are not jumping out of them like the great depression almost a hundred years ago.

So many trends since the depression and the great idea of the urban renewal of the '70s that destroyed most Main Streets in the area here.

With government interference today, we now have malls that are becoming empty and being converted to housing and public recreation, we also have low-income apartments(steering in it legal form) and many town-homes being pushed towards seniors and little home construction for buyers to raise their families. because of all this and a virus that is either the real thing or a hoax to have everything delivered to the front door and no need for the big commercial properties. Oh, and the internet and media are pushing it all along at an alarming pace.

As they say, everything changes, and will it be for the best!

May 12, 2020 02:09 PM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Peter,

We were predicting this in the late 90's.  Too much office space and too much retail space...We were advising shorter leases on Video stores, and longer leases on warehouses.  We were recomending less development, now they have something to blame it on...A

May 12, 2020 11:09 AM
Rainmaker
2,078,693
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I had not heard that Peter Testa . It makes some sense in theory but I wonder if it takes into account all the businesses that will forever close due to the government restrictions. I just relocated my business (same building) because I needed to expand. I tripled my floor space.

May 12, 2020 11:09 AM
Rainmaker
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Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

That is interesting and, if this trend does continue, seems likely.  I am thinking this will pass sooner than we expect.  

May 12, 2020 05:13 PM
Rainmaker
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

That space is going to become light to heavy Industrial, fulfillment centers and centers for manufacturing, packaging and shipping.

May 12, 2020 05:05 PM
Rainmaker
1,766,396
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Sorry, don't get it. 

I like those shared office spaces that they have now. You get a seat, they have a copier, a nice lady that answers the phone & you are working away for a fee.

May 12, 2020 03:39 PM
Rainmaker
2,690,971
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Brick and mortar has been under intense scrutiny for decades and it is getting worse as we go. We see the obvious and the trend proving its diminishing state. Add Acts of Man (virus) and it is terminal. The only thing I see of value is large tracts of well-zoned land, MFG sites and warehouses. Super centers can make commerical work but mom & dad cannot.

May 12, 2020 12:08 PM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hard to say - more companies may be willing to let employees telecommute, but if some companies grow/add employees more space could be needed in the longterm.

May 12, 2020 08:44 PM
Rainer
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Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

I've been on Zoom calls with several CEO's of retail and commercial complexes trying to anaylze and project numbers. I work in a high rise. Working on solutions that involve: not returning to elevator, door man, break room, tiny conference room, open office setting, even the parking structure requires that people crowd in and walk about 2 feet from one another at 8 AM noon and 5:15. This is now a trend and we need to change. Net loss change

May 12, 2020 11:21 AM
Rainmaker
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Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Can't say that I have

May 13, 2020 08:02 AM
Rainmaker
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Yes, many large firms are deciding that working from home actually works and is more efficient in terms of saving on office space. Some NYC investments banks have announced that they will continue that trend, which spells trouble for commercial office space in the big Apple; not net zero change, actual reductions in space is the concern.

May 13, 2020 05:59 AM
Rainmaker
915,618
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

When the numbers are crunched and the real cost of remote working is understood, owners simply won't be able to turn away from the opportunity.

Success will be directly related to cultivating/recruiting a new kind of manager. Those lacking that agility will continue feeding the existing commercial real estate market place becuase they can only effectively manage what they can SEE.

Look for those within the special group start promoting restricting work from home, and home based business as code violation and to protect workers from economic abuse.  City leaders want to protect the commercial real estate INCOME and will take the bait hook, line and sinker.

 

May 13, 2020 05:51 AM
Rainmaker
4,565,876
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Many businesses are now in he "pondering" mode as to space requirements. Some will need less, but some will need more with social distancing. Time will tell!

May 13, 2020 05:40 AM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I am seeing a mix. We already have big office space now listed for lease or sale. Once things get going again, it could balance. The key is meaduring productivty from home vs in an office.

May 13, 2020 04:46 AM
Rainmaker
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Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Perhaps, will have to wait and see Peter. 

May 12, 2020 07:34 PM
Rainmaker
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Roy Kelley
Retired - Gaithersburg, MD

The use of office space will be changing during the coming months.

May 12, 2020 12:12 PM
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Jerrill Ewing
N & J Lake Properties, LLC - Eatonton, GA
Builder

I think different areas will see different results.  I am a builder and have worked from home vs a commercial space my entire career.  My late wife who was an agent always had an office and I see that remaining the case in this market.

May 12, 2020 11:34 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Adjustments will be made. 

Change is inevitable ... a constant in so many ways.

May 13, 2020 08:12 AM
Rainmaker
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

It takes 66 days to form a new habit . Practice makes Permanent !!!

May 13, 2020 06:21 AM
Rainmaker
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AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Peter ~ I think that there will be an impact to office buildings, second only to retail space.  If the business can reduce it's office foot print and lease costs, while allowing workers to remove their commute time/frustration... why wouldn't they?  Now the velocity of this change is what I am curious about, as companies could use shared work space with alternating days/weeks in the office.

As long as workers are productive working from home there will be a drive to allow more tele-work in my opinion.

May 13, 2020 09:58 AM
Rainmaker
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Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Lots of talk about return of the office cubicle as enforced social distancing in workplace.  Also automating public spacees "to mitigate contagion via touch-less technology—automatic doors, voice-activated elevators, cellphone-controlled hotel room entry, hands-free light switches and temperature controls, automated luggage bag tags, and advanced airport check-in and security." How the COVID-19 Pandemic Will Change the Built Environment

As for people, they will return to how they were in a NY minute, because they are human.  They will revert to acting human when this is over...

while a new level of caution and sensititivity to client needs.

May 14, 2020 03:12 PM
Rainer
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Anthony Kirlew
Group 46:10 Network @ eXp Realty - Gilbert, AZ
Helping You Make Fiscally Sound Choices

I am very concerned for the commercial real estate industry as so many businesses are realizing that they can function without the extra cost of a building.

May 13, 2020 06:10 PM