The year 2020 has been a mixed bag in the real estate world. The first 120 days, the coronavirus kept buyers and sellers waiting for the worst to pass.
Now with the easing of the restrictions and life returning to some level of normalcy, residential sales are booming and commercial sales are coming back to life. Residential sales are 25% higher from January through August in 2020 than in 2019. Commercial real estate sales are however 40% below the same January through August period in 2020 than in 2019. Commercial leases are up by a large margin over 2019. Additionally, commercial real estate under contract and scheduled to close before the end of the year is far beyond expectations. I alone have almost $5 million under contract and in negotiations for an additional several million.
With all the above in mind, what do I expect for the rest of 2020 and all of 2021? With the caveat that the political climate remains much the same. By that I mean current interest rates remain historically low, inflation remains under control, economic growth continues on an upward path, employment continues to gain ground, limited new government regulations and the affect of the coronavirus continues to diminish.
With this in mind my predictions for the remainder of 2020 and all of 2021 are as follows:
NEW RESTAURANTS: We will see new restaurants open soon in our area. A new restaurant concept will open in September that promises to offer a new dimension in “drive-through” service. We will also see at least two restaurants relocate, one into a new building and another into an existing location.
NEW COMMERCIAL DEVELOPMENT: Several new large convenience store/truck stop developments are scheduled to start construction. A large apartment complex is planned and several national companies will locate or relocate in our market. The new Surge in West Monroe will open soon near the Ike along with a proposal for a new indoor Sports Complex.
NEW RESIDENTIAL DEVELOPMENT: At least one upscale residential development is proposed and other subdivisions will open to meet the demand for new homes.
NEW HOTELS: Look for at least three new hotels to open in our market.
On the Local Scene
COOPER BUICK GMC (Real Estate) 500 N. 18th Street Monroe, has sold for $1,250,000
Former WALGREEN’S PHARMACY, 7836 DeSiard, Monroe has sold for $450,000. The 11,106 sf building sold for $40.51 psf
Bill Roark is a Commercial Associate Broker at Tri State Properties and may be contacted by email to email@example.com.