COVID -19 and Its Impact on the Commercial Real Estate Industry
Written by Robert LaCoure
With the recent spread of COVID-19, industry leaders are having to think and act fast. Many people in the commercial real estate industry are concerned about the uncertainty of the situation, yet we must adapt to what is happening around us and band together to fight the virus. At Lee & Associates – Houston, our team is taking precautions and thinking ahead in order to mitigate challenges and overcome obstacles that are sure to come.
Our team is proactively ramping up the use of video tours of all office suites for lease across our Houston portfolio as more businesses are hunkering down. As fears arise and it becomes more important for us to stay at home to do our part in flattening the curve, we expect to see a decrease in the number of companies touring office spaces. With the use of a Matterport camera, we are able to share virtual tours of all our active listings. This process allows companies to get an idea of the space without having to be there. They won’t have to touch elevator buttons or other building surfaces at a time of heightened caution.
It’s no surprise that COVID-19 is having a compounding effect on Houston’s office market. From a property management standpoint, Lee & Associates – Houston is prepared and providing the necessary supplies and guidance for tenants. From a leasing perspective, it’s very hard for companies to enter into a long-term lease right now because nobody knows what is going to happen from day to day. As a result, I would advise any landlord with a deal in front of them to take the deal and not over-negotiate. With the oil and gas market in flux and all of the uncertainty, you don’t know when the next deal will come along.
Internally, Lee & Associates – Houston directed all of its employees to clear their desks of any objects before instituting a new work-from-home policy. The clear-desk directive was made to allow cleaning crews to spray down surfaces using Clorox Total 360 System machines to remove all bacteria and viruses from work areas.
Looking ahead, I am hopeful and believe we are getting ahead of the curve by adapting from day one. Technology has been and continues to be an integral part of our everyday lives, and now more than ever we are seeing the positive effects and how it keeps us connected and businesses afloat, even during a time of crisis.
FEATURED MEDIA COVERAGE:
Houston Chronicle: Brokerage beefs up virtual office tours amid coronavirus concerns
Houston Business Journal: Coronavirus adds to pressures on Houston’s struggling office market