2020 is coming to an end and, oh, what a year it has been. The world was surprised by a worldwide pandemic that has affected us all. The spread of the Coronavirus forced worldwide closures and forced many people to start working remotely. While we are all hoping things will go back to normal soon, it is evident that it will be a new normal. Hopefully we will all get to see each other more and give great hugs. One thing that, likely, won’t change, however, is the amount of people that will continue to work remotely. A lot of companies were forced into it but are now realizing that productivity continues and they may be able to cut down costs by eliminating commercial office space. This can have perks, however. When you are working remotely you can work from anywhere, which means you can live where you want, not where your job takes you.
The Impact of the Virtual Work Force on the Real Estate Market
When people start working from home more and don’t have to go to the office there will be many impacts on the real estate market. Residential and Commercial real estate markets are likely to see a lot of changes. Residential Buyer trends have started changing. If buyers aren’t tethered to going into the office, they will change the location of their home and what they need in a home. On the side of Commercial real estate, we may see larger offices minimizing the space they need. We may see more retail spaces taking over those office spaces.
Many people have started evaluating their lives this last year and have decided it is time to live their best life. With remote work it may be possible to live that best life more easily. A lot of people are exploring living in areas that offer more outdoor opportunities. People are being drawn to areas where the air is cleaner or areas that might be less expensive. With historically low interest rates and the opportunity to work from anywhere, a lot of people are moving to their dream city or town.
People are also changing what they are looking for in a home. Having an office space has now become a necessity for a lot of people. Office spaces look different to different people. Some will need an actual room that they can close off to take calls and won’t be interrupted. Some people may just need a cozy nook that feels inspiring. Regardless, a designated office space will be a great thing to promote in upcoming Flagstaff listings.
The Impact of Telecommuting on Commercial Real Estate in Flagstaff, AZ
Across the nation, we have seen employees and employers realize that telecommuting is not only possible for many members of the workforce, but in some cases essential. While this would seem that it would have a negative effect on commercial real estate in Flagstaff, so far it hasn’t. The trend of downsizing office space has primarily affected large, metropolitan office buildings, where having thousands of square feet of largely vacant space has become obsolete.
In Flagstaff we have seen very little reduction in the use of office space, and have actually seen consistent need for small, or individualized office spaces as well. In Flagstaff, the pandemic will likely have much more of an impact on restaurant and local retail spaces, as industries that are still reliant on in-person business models may begin to dissolve and pivot towards other models, making those spaces more readily available. However, like many areas, the shift towards remote working as well as online commerce, continues to make industrial and warehousing type properties more and more desirable. Trade industries have seen increases over the past year, and are requiring space to expand holding yards, warehousing locations, and light manufacturing locations, all continuing to drive up demand for properties zoned as Industrial that accommodate a multitude of those uses. Of course, the uncertainty of the economic climate as a whole can lead all of these trends to change in the coming years as we emerge from the pandemic as well. Only time will tell.
The Impact on Remote Work on Residential Real Estate in Flagstaff, AZ
Flagstaff has always been a destination market for a lot of people. People travel here to enjoy the fresh air, the seasons and more. The one thing that Flagstaff has been missing is an ample amount of employment opportunities. There are not a lot of big employers that have set up shop here, making it hard for a lot of people to have an opportunity to move here. With a lot of jobs moving to remote work, a lot of people wanting what Flagstaff has to offer will get that opportunity as long as they have a good internet connection.
We have already seen an uptick in calls from buyers who are saying that their jobs are going remote and they are ready to move to Flagstaff. This may also change the demographic in our town. We often find a lot of people who are wanting to retire here. Some of these folks may be able to move here sooner if they can work remotely. So we may start to see a younger demographic in Flagstaff. We may also start to see a lot of graduates from Northern Arizona staying in Flagstaff because they can find a good job and do it remotely. There is no doubt that working remotely will create even more competition in our, already, competitive real estate market.
Learn More About Selling or Buying a Home or Office Space in Flagstaff
We are experiencing a market like no other right now in Flagstaff, AZ. Whether you are looking for residential or commercial real estate, or, whether you are a buyer or seller, navigating this market is a challenge. If you have a home to sell in Flagstaff, AZ, be ready for multiple offers. It is important to have an experienced agent that can help you see the differences between each offer and help you choose the offer that best meets your needs. Often a cash offer isn’t the best offer. An experienced real estate agent will help you with all of this.
If you are a buyer right now, be prepared to be aggressive. Luckily interest rates are incredibly low. Prices, however, are being driven up with all of the competition. There are different strategies that a good agent will suggest to help get your offer to the top of the list. It is also important to be prepared to look at a potential purchase as soon as it hits the market. Homes are flying off the market in less than a day in some cases. Patience and perseverance is what it takes to be a buyer right now.
Office space is also hard to come by currently. Our commercial real estate experts can help you find what you are looking for, but you will need patience just like the buyers looking for residential real estate.
Though the market is tough right now, we are always eager to help and make the process as smooth and easy as possible.