Many things have changed quickly in recent months. Current events continue to affect nearly every aspect of life, including real estate development here in California and elsewhere. A survey conducted biannually paints a grim picture of just how long the industry will be affected.
With more people shopping online and working from their homes, the retail and office space markets have taken a hit. As more companies realize they do not necessarily need to worry about the overhead involved with brick and mortar locations, this trend could increase. The fact is that the brick and mortar retail market was already undergoing some restructuring as people wanted a different type of retail experience.
Now, the panel taking part in the survey believes that the real estate development industry here in California will not experience a rebound until at least 2023. Of course, many would agree that the timing of the survey could not be worse. With everything going on in the country right now, it is no surprise that the survey members expressed such a dismal outlook. Unfortunately, the timing does not necessarily make the conclusions wrong.
How the current state of the real estate development market affects individual developers remains to be seen. Existing contracts may be on hold right along with any potential ones. In either case, developers may find themselves in legal disputes they could not have anticipated at the beginning of the year. It would greatly benefit them to consult with an attorney with experience in this area of law in order to determine the best way forward.