As the United States economy continues to recover from the COVID-19 pandemic, numerous business sectors have seen indications that things are on the upswing. Orders are increasing, customer volumes are up, and many companies are enjoying increasingly favorable financial outlooks. Although every business operates with its own set of variables, there is reason for optimism throughout much of the professional and commercial landscape.
A Tale of New York City’s Real Estate Market
For perspective, consider the story of the New York City real estate market. In many ways, this city of several million people is like a microcosm of the United States.
Residents of many nationalities and cultures live in homes that range from simple to grand. They enjoy lifestyles that run the gamut from minimalistic to lavish. Buying and selling those residences and office buildings has become a major industry with its own markets and submarkets.
Pandemic’s Effects on the NYC Real Estate Industry
As was the case in many United States real estate markets, the 2020 COVID-19 pandemic caused widespread disruptions in New York City’s real estate industry. With government mandates shuttering all non-essential businesses, potential property buyers were forced to choose between virtual showings or buying a property sight unseen. Many buyers simply stopped looking.
On the seller side, many property owners took their listings off the market until they had a clearer picture of their options. In-process real estate deals were left in limbo, with agents and closing partners scrambling to find ways to complete their transactions.
Real estate agents and brokers rapidly shifted to home-based operations conducted via phone and computer. Proactive real estate agencies briefed their team members on the logistics of holding virtual open houses via digital media. Virtual closings, lease signings, and online payments became the norm.
Higher Impacts on NYC Rental Markets
New York City’s property rental market experienced more severe impacts compared to the larger real estate market. After many tenants departed the city to minimize their virus risks, landlords decreased rental prices up to 20% to attract new residents. In some cases, landlords offered multiple months of rental concessions.
Many commercial tenants paused their operations or shifted to remote work. As a result, vacant office buildings and commercial spaces became a commonplace sight. These landlords also experienced a substantial reduction in rental income.
New York City Real Estate Recovery Continues
In summer 2021, most New York City brick-and-mortar businesses have resumed normal operations. Many employers have recalled their remote workers or shifted them to hybrid working arrangements. As more people get back to work, more money flows into the economy.
The New York City real estate industry continues its own extended recovery. There is strong demand for downtown-area properties, especially in the Soho and Tribeca areas. The area’s commercial market has seen quite a rebound, as demonstrated by large Soho retail space leases and office properties sales.
The city’s residential real estate market is also picking up steam, with sales and leasing numbers making steady progress upward. The luxury market mirrors this trend, with a recent increase in higher-end property sales.
Planning for the Next Market Disruption
The New York City real estate market is gradually returning to normal. At the same time, the industry is taking proactive steps to minimize the impact of other unexpected business disruptions.
Tailored policies and procedures are currently in the development phase. Real estate agencies and investors should strongly consider adopting their own contingency plans.
CARROLL’s Innovative Real Estate Investment Approach
CARROLL acquires its investment funding by sourcing private capital from global institutional investors. This private capitalization structure frees CARROLL to pursue its business objectives without Board of Directors’ or shareholders’ oversight.
This consistent private capital infusion also enables CARROLL to avoid the “herd mentality” approach to real estate investments. To illustrate, an emerging trend first draws interest from major market players. Second-tier investors soon hop on the bandwagon, leaving gaps in areas with substantial investment potential.
In a signature move, CARROLL often steps into the void, carving out a niche or seizing a timely opportunity that matches its goals. In addition, the Company frequently tasks its in-house real estate market analysts with finding value in underperforming or undervalued assets.
A Consistent Focus on Giving Back
CARROLL has achieved its excellent track record by hiring entrepreneurial-minded employees who embody the spirit of excellence. Once on board, each resourceful professional is encouraged to work toward a higher standard of performance. The phrase “It’s good enough” doesn’t exist in the CARROLL vernacular.
Although hard work is necessary to achieve worthwhile goals, it should be tempered by plenty of workplace camaraderie. In fact, CARROLL’s leadership describes a community culture based on contributing to others. To illustrate, employees are encouraged to engage in philanthropic efforts and find ways to give back within their communities.
Specifically, CARROLL has an ongoing partnership with its local Habitat for Humanity affiliate. CARROLL employees work alongside approved Habitat homeowners, helping to construct well-built homes that help to improve the family’s standard of living. For their part, participating CARROLL employees receive personal satisfaction from putting in “sweat equity” hours on a current house build.
Making these contributions to one’s community, whether in financial or service form, fosters a sense of well-being and relationship to others. When one brings this uplifting spirit into the workplace, it sets the stage for collaborative relationships and mutually beneficial business partnerships.
How Wellness and Self-Care Fit in
Cultivating personal wellness and self-care is also important. A healthy lifestyle that includes good nutrition and regular exercise is a good foundation. A religious or spiritual component can provide added support.
Not surprisingly, achieving a good work-life balance helps to relieve varied sources of stress. In addition, it enables one to better cope with typical work-related obstacles and annoyances.
Looking at the bigger picture, making good personal health choices enables one to maintain a higher state of readiness for work and personal activities. It also sets the stage for optimum performance in every arena.
Proactive Health Care Innovations
A stronger focus on personal health and wellness may be an unexpected benefit of the COVID-19 pandemic. In 2021, digital technology continues to intersect with health care innovations.
As a result, there will likely be more products, services, and applications that support proactive health care. This increased emphasis on staying healthy, as opposed to treating illness or disease, can potentially improve our collective quality of life in the future.