What’s your assessment of the business and investment climate in 2021?
Description: An overview of the business and investment climate in 2021
Well, it really depends on where you’re talking about. Places like Florida and Texas and other southeastern states actually look quite strong and have weathered the covid-19 storm incredibly well.
Other parts of the country – New York and California come to mind – have only recently begun to think seriously about emerging from lockdown, and the economic devastation to those areas will go on for years to come.
One thing that’s true everywhere is a sense of “transition”. Again, in places like Florida and Texas, the transition happening there is that THOUSANDS of new residents are flocking to those states literally every single day. Where they are coming from? States like New York and California, and thus the transition being experienced in those states is one of decline. So there’s something valuable we can learn from that, I suppose.
And nationwide, we’ve seen for several years a strange phenomenon in which the overall population is expanding, but there’s been relatively little happening on the new construction front, which leads us to a shortage – in some places, a very severe shortage – of housing. This bodes very well both for multi- and single-family investment in general, and certainly would make a wise investor positively disposed to considering investing in development projects as well as already-existing commercial real estate assets.