What To Expect From Real Estate In 2021 With Pat Mazza

Pat Mazza

March 12, 2021

What To Expect From Real Estate In 2021

Understanding the commercial real estate trends that will define the next year can help investors make the best decisions on where to put their money, according to developer Pat Mazza.

 

Covid-19 continues to affect the economy and it will continue to impact commercial real estate in the foreseeable future. Investors may have to get creative and put their money into nontraditional assets such as data centers and industrial complexes’ to turn over profits in shorter timeframes. Investors in raw land may have to become even more patient to see their investments pay off, according to Pat Mazza, a Toronto land developer.

 

Pat Mazza Discusses COVID-19’s Impact on Commercial Sales and Prices

Distressed assets don’t always coincide with economic downturns. In fact, real estate is typically the last sector impacted by a recession. Pat Mazza believes that this may lead to more distressed properties such as hotels hitting the market towards the end of the year — hopefully coinciding with a turnaround in the economy. Proactive investors may get some good deals if and when this happens.

 

What Does a Declining Need for Office Space Need? Pat Mazza Explains the Trend

With everyone working from home, many companies may find themselves with extra office space. As commercial leases come up for renewal, commercial tenants may try to offload available office space in favor of smaller less expensive locations. This could lead to a glut in the market which will cause downward pressure on commercial rent. So, investors should choose their commercial investments wisely to avoid ending up with empty buildings without tenants and no income, explains Pat Mazza.

 

Lower Interest Rates Will Continue to Work in Favor of Developers, Says Pat Mazza

Interest rates may remain low throughout the year, thanks to the Federal Reserve’s penchant for helping buyers and stirring up the economy. This is great news for commercial real estate investors with money they want to invest, says Pat Mazza.

 

Pat Mazza Expects Population to Continue Declining in the City and Rising in The Suburbs

Los Angeles, San Francisco, New York City, and Chicago all continue losing residence to the suburbs. Prior to the pandemic, big cities were becoming expensive and middle-income Americans were already seeking more affordable living situations. With this in mind, new investors might want to consider buying land near suburbs that are still expanding.

 

Pat Mazza urges new investors to proceed cautiously when it comes to commercial development, which faces much uncertainty through the end of the year.