The Impact of COVID-19 on Commercial Real Estate
There’s no denying a change in the landscape of how we do business post-COVID-19. The pandemic’s effects on commercial space and commercial real estate overall leave many wondering what’s next and how to proceed from here. During shutdowns and lockdowns, we experienced a constriction in demand for building engineers. With the subsequent reopening of businesses everywhere, building engineers are in critically short supply.
Commercial Office Space
When the lockdown began, so did the mass exodus from office space to remote working from home. However, today’s companies are becoming more aware that working remotely does have its limitations. The truth is, interaction plays a huge role in developing people – more so than formal training. This is especially true for those just starting in their careers. Collaboration with others is an essential part of determining success and will continue to be necessary.
Still, the tendency to cut down on needed office space is a reality of which commercial real estate will feel the impact. So, the next normal will most likely include a happy medium on balance, with some interaction in an office setting and some independent remote work.
The Commercial Real Estate Market
Typically, during an economic downturn, commercial real estate experiences a six-month lag behind other indicators. In the case of COVID-19, we felt the impact much sooner, almost immediately, as people abandoned the prospect of expanding commercial holdings. While investing in commercial real estate is a strong choice in most cases, uncertainty crept in.
The United States Government, and the Federal Reserve, adopted measures meant to mitigate the effects of COVID-19 on commercial real estate. With the passing of the CARES act, intentions are to give a lift to liquidity and cash flows. The act contains some tax and business spending initiatives that commercial real estate companies can leverage.
Long-term implications due to COVID-19 will inevitably change the face of commercial real estate from now on.
Impacts on the Building Maintenance Industry
As the demand for office space diminished and the commercial real estate market felt the sting of COVID-19, those who depend on work maintaining these spaces felt the impact as well. Whether tenants occupy the area or not, crews must still maintain the building. However, few building management groups can afford to carry a whole team of maintenance engineers now.
In fact, their needs may call for additional part-time help instead of carrying full-time maintenance help. It isn’t easy to hire the people you need, only to let them go when you can’t afford them. And how do you hire a “half-person” if that’s what you need? Working with a lighter crew means that absences due to vacation or illness are problematic when you don’t have coverage.
Solving Your Staffing Issues During the “Next Normal”
At BMSI, we have a keen interest in supporting building maintenance engineers and their careers. Our goal is to help them and to help building management achieve their goals. Working together with property management teams, we can supply fully vetted and trained help when you need it. This means that quality full-time, part-time, temporary, permanent, or mobile building engineers are available to fit your needs.
There is no need to run short-staffed for infinite amounts of time while you hold a worker’s space for them. Keep your people and let ours help out in exceptional circumstances. If you need to fill a spot with a permanent worker, we can help with that too!
If you would like more information about keeping just the right amount of qualified maintenance engineering staff you need, contact us at BMSI today! We’re ready to help!