If your business relies on people sharing space in any way, these are uncertain times. The onset of the COVID-19 pandemic immediately affected communal spaces like theaters, restaurants, and bars. But as the virus continues to spread through the community and companies extend the amount of time their employees are working from home, what will the ripple effect be on other major sectors of the economy, such as commercial real estate?
That was the subject of Downtown Dallas Inc.’s continuing “State of Downtown” series this morning. DDI’s President and CEO Kourtny Garrett spoke with Sara Terry, senior vice president at Stream Realty Partners, and their conversation offered a glimpse into how real estate investors are anticipating the short- and long-range impacts of the pandemic on the commercial real estate sector.
The implications for the broader city economy are tremendous. A drop in commercial real estate value, a move toward more permanent remote working environments, and the continued closure of bars and restaurants will undo decades of efforts to build up the health and vitality of Dallas’ central core. Just as the collapse of the real estate economy after the S&L crisis in the late-1980s shaped this city for a generation, a major commercial real estate recession could lead to a plummeting tax base, stagnation in urban reinvestment and revitalization, an incapacity to provide basic city services and maintenance, and an uncertain future for Dallas as an urban center.Read More