As the world slowly reopens in response to the COVID-19 pandemic and associated economic distress, there are opportunities available for investors looking to capitalize on significant lifestyle changes.
So says M Patrick Carroll, founder of CARROLL, one of the nation’s top real estate development companies.
Carroll has been down this path before. After the Great Recession, he saw a chance for growth. During the recession, Carroll saw large swaths of distressed properties that went into foreclosure. Carroll leveraged those weakened market conditions and plummeting prices by making significant strategic investments in companies and properties.
There are, however, notable differences between the Great Recession and the post-pandemic world. During the recession, there was a migration into large metropolitan areas as people sought out the conveniences and amenities of city living.
Meeting the Needs of a Remote Workforce
Today, there is an opposite phenomenon at play. Many homebuyers are looking towards the suburbs. However, they still want the perks that city living afforded. Low-to-no-maintenance living is appealing for these buyers, many of whom are young and either single or married with no children.
Escaping city life comes at a time of uncertainty as the COVID-19 Delta variant adds more questions. However, despite the continuing presence of pandemic-related issues, there are changes that will forever alter the way we work and live.
While businesses are gradually beginning to call employees back to urban workplaces, many are doing so cautiously. According to real estate innovator M Patrick Carroll, they are also offering employees far more flexibility, with either permanent work-from-home options or hybrid arrangements with some days in the office and others at home.
It’s this shift in work reality that provides real opportunities for shrewd real estate developers and investors. The suburban migration and desire for convenience, coupled with more people working at least some of the time from home, means changes are needed to the residential properties offered for sale or lease.
Properties that have walkable amenities, access to outdoor spaces, and functionality that makes working from home more manageable will be in high demand.
Here are some of the amenities that are likely to attract those remote workers:
- Smaller living spaces that do not require the maintenance or upkeep of larger single-family homes
- Built-in workspaces that will no longer force at-home employees to use dining room tables, couches and beds for their work
- Integrated wired and Wi-Fi services that provide strong, reliable access to the Internet, which is the lifeline for remote employees. On-site business centers are one option but do not provide the privacy that many remote employees demand
- Reliable cell phone service that provides clear connections and no dropped calls with clients or coworkers. These services should be accessible in community spaces as well
- Relaxed pet policies that support all those pandemic dogs and cats, along with outdoor spaces such as dog parks and playgrounds to accommodate midday breaks with pets or children
- Flexible leasing policies that reflect the uncertainties and volatility of today’s world
Developers and investors need a new mindset to respond to the realities of 2021 and beyond. Those who get out in front are most likely to see high demand and significant returns.